Date Name Section 8.7 - Worksheet The Cost of Home Ownership Comparing Mortgage Interest for 30-year rate vs 15-year rate. In the lesson notes example, the $175,500 mortgage was financed with a 30-year fixed rate at 7.5%. The total interest paid over 30 years was approximately $266,220. a) Use the loan payment formula for installment loans to find the monthly payment if the time of the mortgage is reduced to 15 years. Round to the nearest dollar. b) Find the total interest paid over 15 years. c) How much interest is saved by reducing the mortgage from 30 to 15 years?
Date Name Section 8.7 - Worksheet The Cost of Home Ownership Comparing Mortgage Interest for 30-year rate vs 15-year rate. In the lesson notes example, the $175,500 mortgage was financed with a 30-year fixed rate at 7.5%. The total interest paid over 30 years was approximately $266,220. a) Use the loan payment formula for installment loans to find the monthly payment if the time of the mortgage is reduced to 15 years. Round to the nearest dollar. b) Find the total interest paid over 15 years. c) How much interest is saved by reducing the mortgage from 30 to 15 years?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Section 8.7 - Worksheet
The Cost of Home Ownership
Comparing Mortgage Interest for 30-year rate vs 15-year rate.
In the lesson notes example, the $175,500 mortgage was financed with a 30-year
fixed rate at 7.5%. The total interest paid over 30 years was approximately
$266,220.
a) Use the loan payment formula for installment loans to find the monthly
payment if the time of the mortgage is reduced to 15 years. Round to the
nearest dollar.
b) Find the total interest paid over 15 years.
c) How much interest is saved by reducing the mortgage from 30 to 15
years?
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