Show all work for full credit. Fill out the chart to compare two options for a $180,000 mortgage with monthly payments.\table[[Option 1: 30-year loan at an APR of 4.65 %, Option 2: 15-year loan at an APR of 3.85%Show all work for full credit.1. Fill out the chart to compare two options for a $180,000 mortgage with monthly payments.Option 1: 30-year loan at an APR of 4.65%Monthly payment:PV=PMT =FV =APR =Periods =Compounding:Total payment:Option 2: 15-year loan at an APR of 3.85%Monthly payment:PV =PMT =FV =APR =Periods =Compounding:Total payment:Percent of total payment that went towardprincipal:Percent of total payment that went towardprincipal:Percent of total payment that went towardinterest:Percent of total payment that went towardinterest:Describe a situation where Option 1 would be a Describe a situation where Option 2 would be abetter choice for someone:better choice for someone:2. Suppose you can afford a $350 monthly car payment. How much can you afford to finance at 4.75%APR for 5 years?PV =PMT=FV =APRPeriods =Compounding:

Step 1: Identify the givenFind OPTION 1OPTION 2PVPresent Value is the loan…

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Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...

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Question

Show all work for full credit. Fill out the chart to compare two options for a $180,000 mortgage with monthly payments.
\table[[Option 1: 30-year loan at an APR of 4.65 %, Option 2: 15-year loan at an APR of 3.85%
Show all work for full credit.
1. Fill out the chart to compare two options for a $180,000 mortgage with monthly payments.
Option 1: 30-year loan at an APR of 4.65%
Monthly payment:
PV=
PMT =
FV =
APR =
Periods =
Compounding:
Total payment:
Option 2: 15-year loan at an APR of 3.85%
Monthly payment:
PV =
PMT =
FV =
APR =
Periods =
Compounding:
Total payment:
Percent of total payment that went toward
principal:
Percent of total payment that went toward
principal:
Percent of total payment that went toward
interest:
Percent of total payment that went toward
interest:
Describe a situation where Option 1 would be a Describe a situation where Option 2 would be a
better choice for someone:
better choice for someone:
2. Suppose you can afford a $350 monthly car payment. How much can you afford to finance at 4.75%
APR for 5 years?
PV =
PMT=
FV =
APR
Periods =
Compounding:

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