Chapter 7, Problem 40RE

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10th Edition

Ron Larson

ISBN: 9781305860919

Textbook Problem

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**Monthly Payments** You are taking out a home mortgage for $200,000. and you are given the options below. Find the monthly payment and the total amount of money you will pay for each mortgage. Which option would you choose? Explain your reasoning.

(a) A fixed annual rate of

(b) A fixed annual rate of

(c) A fixed annual rate of

**(a)**

To determine

**To calculate:** The monthly payment and the total amount of money that would be paid for each mortgage when a home mortgage for

Explanation

**Given Information:**

A home mortgage for

**Formula used:**

The formula used to calculate monthly installment *M* is given by,

Where *P* is the amount, *r* is the rate and *t* is the time period.

**Calculation:**

The amount taken for mortgage is

Thus,

Now substitute all the values in the formula

**(b)**

To determine

**To calculate:** The monthly payment and the total amount of money that would be paid for each mortgage when a home mortgage for

**(c)**

To determine

**To calculate:** The monthly payment and the total amount of money that would be paid for each mortgage when a home mortgage for

Sect-7.1 P-1CPSect-7.1 P-2CPSect-7.1 P-3CPSect-7.1 P-4CPSect-7.1 P-5CPSect-7.1 P-6CPSect-7.1 P-7CPSect-7.1 P-1SWUSect-7.1 P-2SWUSect-7.1 P-3SWU

Sect-7.1 P-4SWUSect-7.1 P-5SWUSect-7.1 P-6SWUSect-7.1 P-7SWUSect-7.1 P-8SWUSect-7.1 P-1ESect-7.1 P-2ESect-7.1 P-3ESect-7.1 P-4ESect-7.1 P-5ESect-7.1 P-6ESect-7.1 P-7ESect-7.1 P-8ESect-7.1 P-9ESect-7.1 P-10ESect-7.1 P-11ESect-7.1 P-12ESect-7.1 P-13ESect-7.1 P-14ESect-7.1 P-15ESect-7.1 P-16ESect-7.1 P-17ESect-7.1 P-18ESect-7.1 P-19ESect-7.1 P-20ESect-7.1 P-21ESect-7.1 P-22ESect-7.1 P-23ESect-7.1 P-24ESect-7.1 P-25ESect-7.1 P-26ESect-7.1 P-27ESect-7.1 P-28ESect-7.1 P-29ESect-7.1 P-30ESect-7.1 P-31ESect-7.1 P-32ESect-7.1 P-33ESect-7.1 P-34ESect-7.1 P-35ESect-7.1 P-36ESect-7.1 P-37ESect-7.1 P-38ESect-7.1 P-39ESect-7.1 P-40ESect-7.1 P-41ESect-7.1 P-42ESect-7.1 P-43ESect-7.1 P-44ESect-7.2 P-1CPSect-7.2 P-2CPSect-7.2 P-3CPSect-7.2 P-1SWUSect-7.2 P-2SWUSect-7.2 P-3SWUSect-7.2 P-4SWUSect-7.2 P-5SWUSect-7.2 P-6SWUSect-7.2 P-1ESect-7.2 P-2ESect-7.2 P-3ESect-7.2 P-4ESect-7.2 P-5ESect-7.2 P-6ESect-7.2 P-7ESect-7.2 P-8ESect-7.2 P-9ESect-7.2 P-10ESect-7.2 P-11ESect-7.2 P-12ESect-7.2 P-13ESect-7.2 P-14ESect-7.2 P-15ESect-7.2 P-16ESect-7.2 P-17ESect-7.2 P-18ESect-7.2 P-19ESect-7.2 P-20ESect-7.2 P-21ESect-7.2 P-22ESect-7.2 P-23ESect-7.2 P-24ESect-7.2 P-25ESect-7.2 P-26ESect-7.2 P-27ESect-7.2 P-28ESect-7.2 P-35ESect-7.2 P-36ESect-7.2 P-37ESect-7.2 P-38ESect-7.2 P-39ESect-7.2 P-40ESect-7.2 P-41ESect-7.2 P-42ESect-7.2 P-43ESect-7.2 P-44ESect-7.2 P-45ESect-7.2 P-46ESect-7.2 P-47ESect-7.2 P-48ESect-7.2 P-49ESect-7.2 P-50ESect-7.2 P-51ESect-7.3 P-1CPSect-7.3 P-2CPSect-7.3 P-3CPSect-7.3 P-4CPSect-7.3 P-5CPSect-7.3 P-1SWUSect-7.3 P-2SWUSect-7.3 P-3SWUSect-7.3 P-4SWUSect-7.3 P-5SWUSect-7.3 P-6SWUSect-7.3 P-7SWUSect-7.3 P-8SWUSect-7.3 P-9SWUSect-7.3 P-10SWUSect-7.3 P-1ESect-7.3 P-2ESect-7.3 P-3ESect-7.3 P-4ESect-7.3 P-5ESect-7.3 P-6ESect-7.3 P-7ESect-7.3 P-8ESect-7.3 P-9ESect-7.3 P-10ESect-7.3 P-11ESect-7.3 P-12ESect-7.3 P-13ESect-7.3 P-14ESect-7.3 P-15ESect-7.3 P-16ESect-7.3 P-17ESect-7.3 P-18ESect-7.3 P-19ESect-7.3 P-20ESect-7.3 P-21ESect-7.3 P-22ESect-7.3 P-23ESect-7.3 P-24ESect-7.3 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P-8ESect-7.9 P-9ESect-7.9 P-10ESect-7.9 P-11ESect-7.9 P-12ESect-7.9 P-13ESect-7.9 P-14ESect-7.9 P-15ESect-7.9 P-16ESect-7.9 P-17ESect-7.9 P-18ESect-7.9 P-19ESect-7.9 P-20ESect-7.9 P-21ESect-7.9 P-22ESect-7.9 P-23ESect-7.9 P-24ESect-7.9 P-25ESect-7.9 P-26ESect-7.9 P-27ESect-7.9 P-28ESect-7.9 P-29ESect-7.9 P-30ESect-7.9 P-31ESect-7.9 P-32ESect-7.9 P-33ESect-7.9 P-34ESect-7.9 P-35ESect-7.9 P-36ECh-7 P-1RECh-7 P-2RECh-7 P-3RECh-7 P-4RECh-7 P-5RECh-7 P-6RECh-7 P-7RECh-7 P-8RECh-7 P-9RECh-7 P-10RECh-7 P-11RECh-7 P-12RECh-7 P-13RECh-7 P-14RECh-7 P-15RECh-7 P-16RECh-7 P-17RECh-7 P-18RECh-7 P-19RECh-7 P-20RECh-7 P-21RECh-7 P-22RECh-7 P-23RECh-7 P-24RECh-7 P-25RECh-7 P-26RECh-7 P-27RECh-7 P-28RECh-7 P-29RECh-7 P-30RECh-7 P-31RECh-7 P-32RECh-7 P-33RECh-7 P-34RECh-7 P-35RECh-7 P-36RECh-7 P-37RECh-7 P-38RECh-7 P-39RECh-7 P-40RECh-7 P-41RECh-7 P-42RECh-7 P-43RECh-7 P-44RECh-7 P-45RECh-7 P-46RECh-7 P-47RECh-7 P-48RECh-7 P-49RECh-7 P-50RECh-7 P-51RECh-7 P-52RECh-7 P-53RECh-7 P-54RECh-7 P-55RECh-7 P-56RECh-7 P-57RECh-7 P-58RECh-7 P-59RECh-7 P-60RECh-7 P-61RECh-7 P-62RECh-7 P-63RECh-7 P-64RECh-7 P-65RECh-7 P-66RECh-7 P-67RECh-7 P-68RECh-7 P-69RECh-7 P-70RECh-7 P-71RECh-7 P-72RECh-7 P-73RECh-7 P-74RECh-7 P-75RECh-7 P-76RECh-7 P-77RECh-7 P-78RECh-7 P-79RECh-7 P-80RECh-7 P-81RECh-7 P-82RECh-7 P-83RECh-7 P-84RECh-7 P-85RECh-7 P-86RECh-7 P-87RECh-7 P-88RECh-7 P-89RECh-7 P-90RECh-7 P-91RECh-7 P-92RECh-7 P-93RECh-7 P-94RECh-7 P-95RECh-7 P-96RECh-7 P-97RECh-7 P-98RECh-7 P-99RECh-7 P-100RECh-7 P-101RECh-7 P-102RECh-7 P-103RECh-7 P-104RECh-7 P-1TYSCh-7 P-2TYSCh-7 P-3TYSCh-7 P-4TYSCh-7 P-5TYSCh-7 P-6TYSCh-7 P-7TYSCh-7 P-8TYSCh-7 P-9TYSCh-7 P-10TYSCh-7 P-11TYSCh-7 P-12TYSCh-7 P-13TYSCh-7 P-14TYSCh-7 P-15TYSCh-7 P-16TYSCh-7 P-17TYSCh-7 P-18TYSCh-7 P-19TYSCh-7 P-20TYSCh-7 P-21TYSCh-7 P-22TYS

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