The graph and table below give the monthly principal and interest payments for a mortgage from 1999 to 2004. Use this information to predict the payment for 2005.
1999 $578
2000 613
2001 654
2002 675
2003 706
2004 730
2005
I have no idea of what I am doing here.
I would graph the table, horizontal line year,vertical line payment. See if you can draw a best fit line to the data.
I don't think that's what i need.
I need to figure out the amount
No worries! I can help you with that. To predict the payment for 2005, we can use the given information from the previous years.
The given information gives us a pattern of how the monthly payments have been increasing over the years. We can analyze this pattern and use it to predict the payment for 2005.
First, let's observe the pattern in the data:
- From 1999 to 2000, the payment increased by $35.
- From 2000 to 2001, the payment increased by $41.
- From 2001 to 2002, the payment increased by $21.
- From 2002 to 2003, the payment increased by $31.
- From 2003 to 2004, the payment increased by $24.
To predict the payment for 2005, we can assume that the same pattern of increase in payments continues. So, we need to determine the increase in payment from 2004 to 2005 and add it to the payment for 2004.
To calculate the increase from 2004 to 2005, we can calculate the average increase from the previous years:
- Average increase = (35 + 41 + 21 + 31 + 24) / 5 = 30.4
Now, we can add this average increase to the payment for 2004:
- Payment for 2004 = $730
- Increase for 2005 = $30.4 (average increase from previous years)
- Payment for 2005 = Payment for 2004 + Increase for 2005
Calculating this, we have:
- Payment for 2005 = $730 + $30.4 = $760.4
Therefore, the predicted monthly payment for 2005 is $760.4.