The price of a small cabin is $40,000. The bank requires a 5% down payment. The buyer is offered two mortgage options, 20-year fixed at 8.5% or 30-year fixed at 8.5%. Calculate the amount of interest paid for each option. How much does the buyer save in interest with the 20-year option. Find the monthly payment for the 20 year option. Find the monthly payment for the 30 year option. Calculate the total cost of interest for both mortgage options. How much does the buyer save in interest with the 20 year option.

Q: The simple interest due on a 2.5-year loan of $8,500 is $1,062.50. Find the monthly payments on the…

A:

Q: cost of a home is $175,000. The bank requires a 5% down payment and three points at closing. The…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: Find the minimum payment on an unpaid balance of $1,416.02. Assume that the minimum payment on a…

A: Solution: Given, Unpaid balance = $1,416.02 The minimum payment on a credit card is the greater of…

Q: Find the simple interest paid on a $470 loan at 6.9% annual interest for 3 months

A: Given:The principal amount (P) is $470.The rate of interest (R) is 6.9% per year.The number of terms…

Q: The balance of my MasterCard is $2345.67 with an APR of 27.8%. I make the minimum payment of $125 a…

A:

Q: Calculate the total cost of interest for both mortgage options. How much does the buyers have an…

A:

Q: To buy the home you love, you will need to take out a $615,000 loan with a 4.1% fixed interest rate…

A: Here we will use EMI on loan formula

Q: Vicki takes out a 10-year loan. The loan is repaid by making 10 level annual repayments at the end…

A:

Q: James wants to buy a car that costs $14,550. The dealership will finance the car for 5 years, at…

A:

Q: Suppose you obtain a 30-year mortgage loan of $194,000 at an annual interest rate of 7.9%. The…

A: We have to find out answer of given question....

Q: You can buy a car for $25,200 or lease the same car for three years for a down payment of $1,500 and…

A: From the given information, it is observed that the basic price of the car is $25,200. If the car is…

Q: Find the monthly payments (just PMT) on a 20-year mortgage for $191,888 if the annual interest rate…

A:

Q: You have the option to take out a 30 year mortgage with an APR of 4.9% what will your monthly…

A:

Q: You take out a 7-yr car loan for $25,000 with a 7.5% APR. The fixed monthly payment is $383.46. How…

A:

Q: The house you find that would accommodate your growing family costs $295,000. You obtain a 30-year…

A: Loan amountinterest rate per month, number of periods in 30 years,

Q: The price of a home is $140,000. The bank requires a 15% down payment. The buyer is offered two…

A:

Q: Use the​ add-on method to determine the monthly payment for a ​$9,000loan at 6​% interest for three…

A:

Q: Mary and Kevin buy a vacation home for $350,000 down and take out a 15- year mortgage for the…

A:

Q: Use PMT = . Round to the nearest dollar. Suppose that you borrow $10,000 for four years at 7%…

A: To Find: The monthly payments and the total interest for the loan.