The table shows monthly payments on a 1000 loan Monthly Paym

The table shows monthly payments on a $1000 loan Monthly Payments (dollars) per S1000 Loan Term (months 24 60 18.87 64432304264623491933 19.90 2441 2028 9 45. 3180 2784 24.89 20.76 10 4614 3227 2832 25.36 2125 11 4661 274 28.79 2585 21.74 12 4707 3321 2928 26.33 2224 36 42 48 5 43.87 97 2600 23.03 4477 08 26.91 23.95 8 4523 3134 2738 2 (a) Is it possible to find a cross-sectional model for monthly payments for a 20-month loan? O Yes O No If so, would this cross section be represented by a row or a column of the table? column O It is not possible to find a cross-sectional model. (b) Is it to find a cross-sectional model for monthly payments for a loan at 10%? Yes No If so, would this cross section be represented by a row or a column of the toble? o column It is not possible to find a cross-sectional model. 60 Round all numerical values to (c Find thc function ofthe quadratic cross sectional model that gives the monthly payment in dollars on ??1000 loan, where t months is the length of the loan ?nd 10% is the interest rate with data from 24 three decimal places.) t m(t, 10)- dollars Estimate the monthly payments for a 20-month loan at 10%. (Round your answer to the nearest cent.) NOTE: Web Assign is expecting you to use the rounded function that you entered above. We always use the unrounded function in order to minimize intermediate rounding errors. Use the rounded function for this question ONLY

Solution

(a)

Is it possible to find a cross-sectional model for monthly payments for a 20-month loan?

NO

Because, in order to find one, the tenure is to be included in the table. But there is no such 20 months in columns provided.

If so, would this cross section be represented by a row or column of the above?

It is not possible to find a cross-sectional model.

(b)

Is it possible to find a cross-sectional model for monthly payments for a loan at 10%?

Yes. In order to model monthly payments for a loan at 10%, the table must include a row for 10% interest given different lifetimes. The table shown includes such a row.

If so, would this cross section be represented by a row or a column of the table?

Row.

.

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