A house is purchased for $200,000 and a 20% down payment is made. The balance is financed by a 30 year adjustable rate mortgage with monthly payments. The initial interest rate is 12% per annum, compounded monthly. Just after the 240th payment, the interest rate is increased to 14% compounded monthly. The payments remain at the original amount until a final smaller payment fully repays the loan. What is the total number of monthly mortgage payments made over the life of the loan, including the final smaller payment?

Total marketing effort is a term used to describe the critical decision factors that affect demand: price, advertising, distribution, and product quality. define the variable x to represent total marketing effort. a typical model that is used to predict demand as a function of total marketing effort is based on the power function: d = axb suppose that a is a positive number. different model forms result from varying the constant b. sketch the graphs of this model for b = 0, b = 1, 0< b< 1, b< 0, and b> 1. (we encourage you to use excel to do this.) what does each model tell you about the relationship between demand and marketing effort? what assumptions are implied? are they reasonable? how would you go about selecting the appropriate model?