In terms of paying less in interest, which is more economical for a $140,000 mortgage: a 30-year fixed-rate at 7.5% or a 15-year fixed-rate at 7%? How much is saved in interest? Use the following formula to determine the regular payment amount. PMT= -0 P nt *** Select the correct choice below and fill in the answer box within your choice. (Do not round until the final answer. Then round to the nearest thousand dollars.) OA. The 15-year 7% loan is more economical. The buyer will save approximately $ B. The 30-year 7.5% loan is more economical. The buyer will save approximately $ in interest. in interest.
In terms of paying less in interest, which is more economical for a $140,000 mortgage: a 30-year fixed-rate at 7.5% or a 15-year fixed-rate at 7%? How much is saved in interest? Use the following formula to determine the regular payment amount. PMT= -0 P nt *** Select the correct choice below and fill in the answer box within your choice. (Do not round until the final answer. Then round to the nearest thousand dollars.) OA. The 15-year 7% loan is more economical. The buyer will save approximately $ B. The 30-year 7.5% loan is more economical. The buyer will save approximately $ in interest. in interest.
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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Transcribed Image Text:In terms of paying less in interest, which is more economical for a $140,000 mortgage: a 30-year fixed-rate at 7.5% or
a 15-year fixed-rate at 7%? How much is saved in interest? Use the following formula to determine the regular
payment amount.
PMT=
PA
[¹-(1+)
-nt7
Select the correct choice below and fill in the answer box within your choice.
(Do not round until the final answer. Then round to the nearest thousand dollars.)
O A. The 15-year 7% loan is more economical. The buyer will save approximately $
OB. The 30-year 7.5% loan is more economical. The buyer will save approximately $
in interest.
in interest.
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