You would like to buy a house for $850,000.  You put $180,000 down, and then get a mortgage for the rest at 7.5%, compounded monthly.  1.   Calculate the monthly mortgage and total cost of 360 payments if you amortize over 30 years.  (Remember to round to 2 decimal places for each answer) 2.  Calculate the monthly mortgage and total cost of 180 payments if you amortize over 15 years.  (Remember to round to 2 decimal places for each answer) 3. List at least one benefit and at least one downside to each loan, and then tell me which would you prefer?

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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You would like to buy a house for $850,000.  You put $180,000 down, and then get a mortgage for the rest at 7.5%, compounded monthly. 

1.   Calculate the monthly mortgage and total cost of 360 payments if you amortize over 30 years.  (Remember to round to 2 decimal places for each answer)

2.  Calculate the monthly mortgage and total cost of 180 payments if you amortize over 15 years.  (Remember to round to 2 decimal places for each answer)

3. List at least one benefit and at least one downside to each loan, and then tell me which would you prefer?

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