A restaurant manager has the option of a 30-year loan of $414,000 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 (in dollars) for the 30-year loan. (Enter a number. Round your answer to the nearest cent.) $ Calculate the monthly payment (in dollars) for the 15-year loan. (Enter a number. Round your answer to the nearest cent.) $ (b) Calculate the savings in interest (in dollars) by using the 15-year loan. (Enter a number. Round your answer to the nearest cent.) $ (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? YesNo (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? moreless
A restaurant manager has the option of a 30-year loan of $414,000 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 (in dollars) for the 30-year loan. (Enter a number. Round your answer to the nearest cent.) $ Calculate the monthly payment (in dollars) for the 15-year loan. (Enter a number. Round your answer to the nearest cent.) $ (b) Calculate the savings in interest (in dollars) by using the 15-year loan. (Enter a number. Round your answer to the nearest cent.) $ (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? YesNo (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? moreless
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 17P
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Concept explainers
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
Question
100%
A restaurant manager has the option of a 30-year loan of $414,000 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 (in dollars) for the 30-year loan. (Enter a number. Round your answer to the nearest cent.)
$
$
Calculate the monthly payment (in dollars) for the 15-year loan. (Enter a number. Round your answer to the nearest cent.)
$
$
(b)
Calculate the savings in interest (in dollars) by using the 15-year loan. (Enter a number. Round your answer to the nearest cent.)
$
$
(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?
YesNo
(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?
moreless
Transcribed Image Text:A restaurant manager has the option of a 30-year loan of $414,000 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 (in dollars) for the 30-year loan. (Enter a
number. Round your answer to the nearest cent.)
$
Calculate the monthly payment (in dollars) for the 15-year loan. (Enter a
number. Round your answer to the nearest cent.)
$
(b) Calculate the savings in interest (in dollars) by using the 15-year loan.
(Enter a number. Round your answer to the nearest cent.)
$
(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
less
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