A family wants to purchase a house that costs $135,000. They plan to take out a $125,000 mortgage on the house and put $10,000 as a down payment. The bank informs them that with a 15-year mortgage their monthly payment would be $718.77 and with a 30-year mortgage their monthly payment would be $582.86. Determine the amount they would save on the cost of the house if they selected the 15-year mortgage rather than the 30-year mortgage. **** How much would they save if they selected the 15-year mortgage?
A family wants to purchase a house that costs $135,000. They plan to take out a $125,000 mortgage on the house and put $10,000 as a down payment. The bank informs them that with a 15-year mortgage their monthly payment would be $718.77 and with a 30-year mortgage their monthly payment would be $582.86. Determine the amount they would save on the cost of the house if they selected the 15-year mortgage rather than the 30-year mortgage. **** How much would they save if they selected the 15-year mortgage?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 28P
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A family wants to purchase a house that costs $135,000. They plan to take out a $125,000 mortgage on the house and put $10,000 as a down payment. The bank informs them that with a 15-year mortgage their monthly payment would be $718.77 and with a 30-year mortgage their monthly payment would be $582.86. Determine the amount they would save on the cost of the house if they selected the 15-year mortgage rather than the 30-year mortgage. **** How much would they save if they selected the 15-year mortgage?
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