(a) Calculate the monthly payment for each loan. (Round your answers to the nearest cent.) 30-year $ Incorrect: Your answer is incorrect. 15-year $ Incorrect: Your answer is incorrect. (b) Calculate the savings in interest by using the 15-year loan. (Round your answer to the nearest cent.) $ Incorrect: Your answer is incorrect. (c) The term of the 15-year loan is one-half the term of the 30-year loan. Is the monthly payment for the 15-year loan twice that of the 30-year loan?
(a) Calculate the monthly payment for each loan. (Round your answers to the nearest cent.) 30-year $ Incorrect: Your answer is incorrect. 15-year $ Incorrect: Your answer is incorrect. (b) Calculate the savings in interest by using the 15-year loan. (Round your answer to the nearest cent.) $ Incorrect: Your answer is incorrect. (c) The term of the 15-year loan is one-half the term of the 30-year loan. Is the monthly payment for the 15-year loan twice that of the 30-year loan?
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 17P
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Question
100%
A restaurant manager has the option of a 30-year loan of $411,000 at an annual interest rate of 3.95% or the same interest rate but on a loan for 15 years.
(a)
Calculate the monthly payment for each loan. (Round your answers to the nearest cent.)
30-year $
Incorrect: Your answer is incorrect.
15-year $
Incorrect: Your answer is incorrect.
(b)
Calculate the savings in interest by using the 15-year loan. (Round your answer to the nearest cent.)
$
Incorrect: Your answer is incorrect.
(c)
The term of the 15-year loan is one-half the term of the 30-year loan. Is the monthly payment for the 15-year loan twice that of the 30-year loan?
Yes
No
(d)
Is the interest savings for the 15-year loan more or less than one-half of the interest paid on the 30-year loan?
more
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