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Calculate the total cost of interest for both mortgage options. How much does the buyers have an interest with the 15- ear option?

Calculate the total cost of interest for both mortgage options. How much does the buyers have an interest with the 15- ear option?

College Algebra
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter8: Sequences And Series
Section8.4: Mathematics Of Finance
Problem 16E: Mortgage What is the monthly payment on a 30-year mortgage of $80,000 at 9% interest? What is the...
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Calculate the total cost of interest for both mortgage options. How much does the buyers have an interest with the 15- ear option?
The price of a home is $170,000. The bank requires a 15% down payment. The buyer is offered two mortgage options: 15-year fixed at 7.5% or 30-year fixed at 7.5%. Calculate the amount of interest paid for each option. How much does the buyer save in interest with the 15-year option? Use the following formula to determine the regular payment amount PMT= 1- P -nt Find the monthly payment for the 15-year option. $1340.00 (Round to the nearest dollar as needed.) Find the monthly payment for the 30-year option. $ 1010.00 (Round to the nearest dollar as needed.) Calculate the total cost of interest for both mortgage options. How much does the buyer save in interest with the 15-year option? (Use the answers from parts 1 and 2 to find this answer.) ● ÷ More
Transcribed Image Text:The price of a home is $170,000. The bank requires a 15% down payment. The buyer is offered two mortgage options: 15-year fixed at 7.5% or 30-year fixed at 7.5%. Calculate the amount of interest paid for each option. How much does the buyer save in interest with the 15-year option? Use the following formula to determine the regular payment amount PMT= 1- P -nt Find the monthly payment for the 15-year option. $1340.00 (Round to the nearest dollar as needed.) Find the monthly payment for the 30-year option. $ 1010.00 (Round to the nearest dollar as needed.) Calculate the total cost of interest for both mortgage options. How much does the buyer save in interest with the 15-year option? (Use the answers from parts 1 and 2 to find this answer.) ● ÷ More
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