Concept explainers
In Exercises 1-10, use
to determine the regular payment amount, rounded to the nearest dollar.
In Exercises 7-8, which mortgage loan has the greater total cost (closing cost + the amount paid for points + total cost of interest)? By how much?
A $120,000 mortgage with two loan options:
Mortgage A: 30-year fixed at 7% with closing costs of $2000 and one point
Mortgage B: 30-year fixed at 6.5% with closing costs of $1500 and four points
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Thinking Mathematically (6th Edition)
- Someone needs to borrow $12,000 to buy a car and the person has determined that monthly payments of $225 are affordable. The bank offers a 4-year loan at 8% APR, a 5-year loan at 8.5% APR, or a 6-year loan at 9% APR. Which laon best meets the person's needs? Explain. A. The first loan best meets the person's needs because the montly payment of $__ is less than the maximum budgeted amount of $225 per month. B. The second loan best meets the person's needs because the monthly payment of $__ is less than the maximum budgeted amount of $225 per month. C. The third loan best meets the person's needs because the monthly payment of $__ is less than the maximum budgeted amount of $225 per month. D. None of the loans meet the person's needs.arrow_forwardUse PMT=Prn1−1+rn−nt to determine the regular payment amount, rounded to the nearest dollar. In terms of paying less in interest, which is more economical for a $250,000 mortgage: a 30-year fixed-rate at9.5% or a 20-year fixed-rate at 9%? How much is saved in interest? Part 1 Determine which loan is more economical. Choose the correct answer below. The 20-year 9%loan is more economical. Your answer is correct. The 30-year 9.5%loan is more economical. Part 2 The buyer will save approximately ________ in interest.arrow_forward
- Holt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGAL