linear modeling

Question

if you have an annual income of 25,000 the bank will loan you 74,500 at 7.5% interest rate for 30 years. if your income is 55,000 they will loan you 163,900. write the equation.

Answer 1

Let x = annual income and let y = amount that the bank will loan

Assuming that the relationship between x and y is linear, we have (25000, 74500) and (55000, 163900) are points on a line.

Slope of line = (163900 - 74500) / (55000 - 25000) = 2.98

Equation of line: y - 74500 = 2.98(x - 25000)

y = 2.98x

Answer 2

Do want the interest?.....................