Calculate the monthly payment for each.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 35P
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Kathy plans to move to Maryland and take a job at McCormick as the Assistant Director of HR.   She and her husband Stan plan to buy a house in Garrison, MD and their budget is $500,000.  They have $100,000 for the down payment and McCormick will pay for closing costs.  They are considering either a 30 year mortgage at 4.5% annual rate or a 15 year mortgage at 4%.  Calculate the monthly payment for each.  Property taxes and insurance will add $1,000 per  month to whichever mortgage they choose.  What should Kathy and Stan do?

                    15yr               30yr

PMT: 

Monthly:

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