John and Chelsea decide they would like to buy furniture. They choose items that amount to $5600.00. The store has 2 fixed installment simple interest loan options for purchasing:   Option 1: 20% down payment and financing at 5% simple interest per year for 3 years.    Option 2:  no down payment and financing at 5.25% simple interest for 4 years.     Which option will result in smaller finance charge (interest)? What will that finance charge/interest be?   Which option will result in the smaller monthly payment on this fixed installment loan? What will that monthly payment be?   They decide to defer any purchases and invest a $5600 bonus that Chelsea will be getting from work in a savings account. The interest rate is 1.8% compounded every month.  How much interest will they earn in 4 years?

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Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.