Compare the monthly payments and total loan costs for the following pairs of loanoptions. Assume that both loans are fixed rate and have the same closing costs.You need a $110,000 loan.Option 1: a 30-year loan at an APR of 8.5%.Option 2: a 15-year loan at an APR of 8%.Find the monthly payment for each option.The monthly payment for option 1 is $ 845.80The monthly payment for option 2 is $ 1051.22(Do not round until the final answer. Then round to the nearest cent as needed.)Find the total amount paid for each option.The total payment for option 1 is $The total payment for option 2 is $(Use the answers from the previous step to find this answer. Round to the nearestcent as needed.)

Monthly Payment on Loan: This monthly payment is computed from the interest charged on the loan and…

Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $110,000 loan. Option 1: a 30-year loan at an APR of 8.5%. Option 2: a 15-year loan at an APR of 8%. Find the monthly payment for each option. The monthly payment for option 1 is $ 845.80.

Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $110,000 loan. Option 1: a 30-year loan at an APR of 8.5%. Option 2: a 15-year loan at an APR of 8%. Find the monthly payment for each option. The monthly payment for option 1 is $ 845.80.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 15P

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