Question

Now, using the best fit function for the data, y= -465.4569x +17,267.6, perform extrapolation to estimate the principal balance of the loan after 15, 20 and 30 payments. Type the correct answer in each box. Round your answers to the nearest cent.

Answer 1

Substitute x = 15 into the best fit function and solve for y:

y = -465.4569x + 17,267.6

= -465.4569(15) + 17,267.6

= 10,285.7465

The principal balance after 15 payments would be $10,285.75.

Substitute x = 20 into the best fit function and solve for y:

y = -465.4569x + 17,267.6

= -465.4569(20) + 17,267.6

= 7,958.462

The principal balance after 20 payments would be $7,958.46.

Substitute x = 30 into the best fit function and solve for y:

y = -465.4569x + 17,267.6

= -465.4569(30) + 17,267.6

= 3,303.893

The principal balance after 30 payments would be $3,303.89.

Explanation:

Answer 2

For this case we can do the following:

y(15) = -465.4569*15 + 17267.6 = 10285.7465

y(20) = -465.4569*20 + 17267.6 = 7958.462

y(30) = -465.4569*30 + 17267.6 = 3303.893

After round we got:

After 15 payments: 10285.75

After 20 payments: 7958.46

After 30 payments: 3303.89