Suppose you borrow $275,000.00 by taking out a 15 year fixed rate mortgage with a monthly payment of $1,881.05. You made a down payment of $48,400.00. (a) Calculate the Total Cost of the home, including the down payment. Round your answer to the nearest cent. Total Cost $ (b) Calculate the Total Cost of the home, including the down payment, assuming instead a 30 year fixed mortgage with a monthly payment of $1,370.87 and a down payment of $48,400.00. Round your answer to the nearest cent. Total Cost Ś (c) How do the totals compare for the 15 and 30 year loans?
Suppose you borrow $275,000.00 by taking out a 15 year fixed rate mortgage with a monthly payment of $1,881.05. You made a down payment of $48,400.00. (a) Calculate the Total Cost of the home, including the down payment. Round your answer to the nearest cent. Total Cost $ (b) Calculate the Total Cost of the home, including the down payment, assuming instead a 30 year fixed mortgage with a monthly payment of $1,370.87 and a down payment of $48,400.00. Round your answer to the nearest cent. Total Cost Ś (c) How do the totals compare for the 15 and 30 year loans?
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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Subject: Finance
Transcribed Image Text:Suppose you borrow $275,000.00 by taking out a 15 year fixed rate mortgage with a
monthly payment of $1,881.05. You made a down payment of $48,400.00.
(a) Calculate the Total Cost of the home, including the down payment. Round your
answer to the nearest cent.
Total Cost
$
(b) Calculate the Total Cost of the home, including the down payment, assuming
instead a 30 year fixed mortgage with a monthly payment of $1,370.87 and a down
payment of $48,400.00. Round your answer to the nearest cent.
Total Cost
(c) How do the totals compare for the 15 and 30 year loans?
O Total Cost of home with 15 year mortgage > Total Cost of home with 30 year mortgage
O Total Cost of home with 15 year mortgage < Total Cost of home with 30 year mortgage
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