You want to buy a $249,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 6.7% interest for the rest. d) Suppose you want to pay off the loan in 15 years rather than 30. What will your monthly payment be? $ e) How much money in interest will you save if you finance for 15 years instead of 30 years?
You want to buy a $249,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 6.7% interest for the rest. d) Suppose you want to pay off the loan in 15 years rather than 30. What will your monthly payment be? $ e) How much money in interest will you save if you finance for 15 years instead of 30 years?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 34P
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Question
You want to buy a $249,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 6.7% interest for the rest.
d) Suppose you want to pay off the loan in 15 years rather than 30. What will your monthly payment be?
$
e) How much money in interest will you save if you finance for 15 years instead of 30 years?
$
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