A couple decides to switch from monthly to accelerated weekly payments on their 20-year$250,000 5% fixed-rate mortgage. How much total interest would they save? Round to thenearest dollar.a) $15,560b) $20,793c) $21,499d) $24,872

total interest paid in the monthly payment schedule:total interest = (loan amount * interest rate *…

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How much total interest would they save?

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Chapter6: Using Credit

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Question

A couple decides to switch from monthly to accelerated weekly payments on their 20-year
$250,000 5% fixed-rate mortgage. How much total interest would they save? Round to the
nearest dollar.
a) $15,560
b) $20,793
c) $21,499
d) $24,872

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Step 1: calculating total interest saved from switching from monthly to accelerated.

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Step 2: here we will be calculating the interest paid in accelerated weekly payment schedule.

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