3. Suppose we need to borrow $150,000 at an APR of 6% to buy a new house. a. What will be the monthly payment if we borrow the money for 15 years? b. How much interest will we have paid by the end of the loan? c. What is the monthly payment if you were to borrow the money for 25 years? With that being said, how much interest will you have paid at the end of the 25 year loan?
3. Suppose we need to borrow $150,000 at an APR of 6% to buy a new house. a. What will be the monthly payment if we borrow the money for 15 years? b. How much interest will we have paid by the end of the loan? c. What is the monthly payment if you were to borrow the money for 25 years? With that being said, how much interest will you have paid at the end of the 25 year loan?
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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3. Suppose we need to borrow $150,000 at an APR of 6% to buy a new house.
a. What will be the monthly payment if we borrow the money for 15 years?
b. How much interest will we have paid by the end of the loan?
c. What is the monthly payment if you were to borrow the money for 25 years? With that being said, how much interest will you have paid at the end of the 25 year loan?
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