6.3 Mortgage Application Process 1. If you borrow $320,000 at an APR of 7% for 20 years, you will pay more per month than if you borrow the money for 25 years at 7%. a. What is the monthly payment on the 20-year mortgage, to the nearest cent? V= b. What is the total interest paid on the 20-year mortgage? c. What is the monthly payment on the 25-year mortgage? d. What is the total interest paid on the 25-year mortgage? e. How much more interest is paid on the 25-year loan? Round to the nearest dollar. f. What is the difference between the monthly payments of the two different loans? Round to the nearest dollar.

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.