Stephen just purchased a home for $151,500. A morgage company has approved his loan ‘application for a 30 year fixed rate loan at 5.00%. Stephen has agreed to pay 25% of the purchase price as a down payment.[f Stephen made the same loan for 20 years, How much Interest would he save?
Stephen just purchased a home for $151,500. A morgage company has approved his loan ‘application for a 30 year fixed rate loan at 5.00%. Stephen has agreed to pay 25% of the purchase price as a down payment.[f Stephen made the same loan for 20 years, How much Interest would he save?
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
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Question
Stephen just purchased a home for $151,500. A morgage company has approved his loan ‘application for a 30 year fixed rate loan at 5.00%. Stephen has agreed to pay 25% of the purchase price as a down payment.[f Stephen made the same loan for 20 years, How much Interest would he save?
Transcribed Image Text:Stephen just purchased a home for $151,500. A morgage company has approved his loan
application for a 30 year fixed rate loan at 5.00%. Stephen has agreed to pay 25% of the
purchase price as a down payment. it Stephen made the same loan for 20 years, How much
interest would he save?
Years
financed 3.00% 3.25% 3.50% 3.75% 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% 5.50% 5.75% 6.00% 6.25% 6.50% 6.75%
Annual interest rate
9.66
8.20
691
6.26
5.55
5.18
4.74
4.22
3.85
10
12
15
17
9.89
8.51
7 03
9.77
10.01
8.63
7 27
6.64
5.93
5.57
5. 14
4.63
4 28
10.12
8.76
740
6.76
6.06
10.24
8.88
7.52
6.89
6.19
5 84
542
4.92
4.58
10 36 10.48
9.00
9.12
7.78
765
7.02
7.15
6.33
6.46
5.97
6.11
5.56
5.70
5.07
5.22
4.73
4.89
10.61
9.25
7.91
729
6.60
6.25
5.85
5.37
5.05
10.73 10.85
9.37
8.04
7.42
6.74
639
5.99
5.52
521
10.98 11.10
9.63
9.76
8.30
844
7.69
7.83
7.02
7.16
6.68
6.83
6.29
644
11.23
9.89
8.57
7.97
7.31
6.98
6.60
6.16
587
11.35 11.48
10.02 10.15
8.71
8.11
7.46
7.13
6.75
6.32
6.04
8.40
7.15
651
5.80
5 44
5.01
4.49
4.13
9.50
8.17
7.56
6.80
6.54
6.14
5.68
537
6.39
8.85
8.25
7.60
7 20
20
5 67
22
25
30
35
531
4.87
4.35
399
5 70
5.28
4.77
4 43
6.91
5.84
6.00
6.49
621
5.54
5.70
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