Homework Help is Here – Start Your Trial Now!
Math
Advanced Math
Compare the monthly payment and total payment for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $180,000 loan. Option 1: a 30-year loan at an APR of 7.5%. Option 2: a 15-year loan at an APR of 6.5%. Find the monthly payment for each option. The monthly payment for option 1 is $ The monthly payment for option 2 is $ (Do not round until the final answer. Then round to the nearest cent as needed.) Find the total payment for each option. The total payment for option 1 is $ The total payment for option 2 is $ (Round to the nearest cent as needed.) Compare the two options. Which appears to be the better option? C OA. Option 1 will the better option. OB. Option 1 is the better option, but only if the borrower plans to stay in the same home for the entire term of the loan. OC. Option 2 is the better option, but only if the borrower can afford the higher monthly payments over the entire term of the loan. OD. Option 2 will always be the better option.

Compare the monthly payment and total payment for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $180,000 loan. Option 1: a 30-year loan at an APR of 7.5%. Option 2: a 15-year loan at an APR of 6.5%. Find the monthly payment for each option. The monthly payment for option 1 is $ The monthly payment for option 2 is $ (Do not round until the final answer. Then round to the nearest cent as needed.) Find the total payment for each option. The total payment for option 1 is $ The total payment for option 2 is $ (Round to the nearest cent as needed.) Compare the two options. Which appears to be the better option? C OA. Option 1 will the better option. OB. Option 1 is the better option, but only if the borrower plans to stay in the same home for the entire term of the loan. OC. Option 2 is the better option, but only if the borrower can afford the higher monthly payments over the entire term of the loan. OD. Option 2 will always be the better 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...
See similar textbooks
icon
Related questions
Question
Compare the monthly payment and total payment for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $180,000 loan. Option 1: a 30-year loan at an APR of 7.5%. Option 2: a 15-year loan at an APR of 6.5%. Find the monthly payment for each option. The monthly payment for option 1 is $ The monthly payment for option 2 is $ (Do not round until the final answer. Then round to the nearest cent as needed.) Find the total payment for each option. The total payment for option 1 is $ The total payment for option 2 is $ (Round to the nearest cent as needed.) Compare the two options. Which appears to be the better option? OA. Option 1 will the better option. OB. Option 1 is the better option, but only if the borrower plans to stay in the same home for the entire term of the loan. OC. Option 2 is the better option, but only if the borrower can afford the higher monthly payments over the entire term of the loan. OD. Option 2 will always be the better option.
Transcribed Image Text:Compare the monthly payment and total payment for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $180,000 loan. Option 1: a 30-year loan at an APR of 7.5%. Option 2: a 15-year loan at an APR of 6.5%. Find the monthly payment for each option. The monthly payment for option 1 is $ The monthly payment for option 2 is $ (Do not round until the final answer. Then round to the nearest cent as needed.) Find the total payment for each option. The total payment for option 1 is $ The total payment for option 2 is $ (Round to the nearest cent as needed.) Compare the two options. Which appears to be the better option? OA. Option 1 will the better option. OB. Option 1 is the better option, but only if the borrower plans to stay in the same home for the entire term of the loan. OC. Option 2 is the better option, but only if the borrower can afford the higher monthly payments over the entire term of the loan. OD. Option 2 will always be the better option.
Expert Solution
steps

Step by step

Solved in 3 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
College Algebra
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS