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Use PMT = to determine the regular payment amount, rounded to the nearest dollar. The price of a small cabin is $55,000. The bank requires a - nt 1-|1+ 5% down payment. The buyer is offered two mortgage options: 20-year fixed at 6.5% or 30-year fixed at 6.5%. Calculate the amount of interest paid for each option. How much does the buyer save in interest with the 20-year option? .....

Use PMT = to determine the regular payment amount, rounded to the nearest dollar. The price of a small cabin is $55,000. The bank requires a - nt 1-|1+ 5% down payment. The buyer is offered two mortgage options: 20-year fixed at 6.5% or 30-year fixed at 6.5%. Calculate the amount of interest paid for each option. How much does the buyer save in interest with the 20-year 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 19E
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Use PMT = to determine the regular payment amount, rounded to the nearest dollar. The price of a small cabin is $55,000. The bank requires a - nt 1-|1+ 5% down payment. The buyer is offered two mortgage options: 20-year fixed at 6.5% or 30-year fixed at 6.5%. Calculate the amount of interest paid for each option. How much does the buyer save in interest with the 20-year option? Find the monthly payment for the 20-year option. (Round to the nearest dollar as needed.)
Transcribed Image Text:Use PMT = to determine the regular payment amount, rounded to the nearest dollar. The price of a small cabin is $55,000. The bank requires a - nt 1-|1+ 5% down payment. The buyer is offered two mortgage options: 20-year fixed at 6.5% or 30-year fixed at 6.5%. Calculate the amount of interest paid for each option. How much does the buyer save in interest with the 20-year option? Find the monthly payment for the 20-year option. (Round to the nearest dollar as needed.)
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