site, find another.) Type in a home price of $300,000. Leaving all other entries as they are, enter an interest of 3%. Then change it to 4%. Then change it to 5%. Record the monthly payment readouts for each interest rate. Be careful with your calculations below and accurate with your research so that this assignment is useful! 1a. What was the monthly payment difference in cost between the 3% and 5% loans? 1b. Multiply that monthly cost difference by 360 (the number of months in a 30 year home loan). What is the result? This is what a borrower may be paying MORE than someone else over the life of that loan due to credit. 1c. Why are customers with high credit scores given loans with lower interest rates? Reference the notes above for help here.
site, find another.) Type in a home price of $300,000. Leaving all other entries as they are, enter an interest of 3%. Then change it to 4%. Then change it to 5%. Record the monthly payment readouts for each interest rate. Be careful with your calculations below and accurate with your research so that this assignment is useful! 1a. What was the monthly payment difference in cost between the 3% and 5% loans? 1b. Multiply that monthly cost difference by 360 (the number of months in a 30 year home loan). What is the result? This is what a borrower may be paying MORE than someone else over the life of that loan due to credit. 1c. Why are customers with high credit scores given loans with lower interest rates? Reference the notes above for help here.
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
Problem 1PS
Related questions
Question
Transcribed Image Text:site, find another.) Type in a home price
of $300,000. Leaving all other entries
as they are, enter an interest of 3%.
Then change it to 4%. Then change it to
5%. Record the monthly payment
readouts for each interest rate. Be
careful with your calculations below
and accurate with your research so
that this assignment is useful!
1a. What was the monthly
payment fference cost
between the 3% and 5% loans?
1b. Multiply that monthly cost
difference by 360 (the number of
months in a 30 year home loan).
What is the result? This is what a
borrower may be paying MORE than
someone else over the life of that
loan due to credit.
1c. Why are customers with high
credit scores given loans with lower
interest rates? Reference the notes
above for help here.
1d. What does this research tell you
about the importance of maintaining
a "good" credit score (as best as
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