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Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
Edition 7ISBN: 978-1285448596Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
Edition 7ISBN: 978-1285448596 Exercise 24
As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI, using Table 14-1 and the monthly PITI for the following mortgages.
Phil Pittman is interested in a fixed-rate mortgage for $100,000. He is undecided whether to choose a 15- or 30-year mortgage. The current mortgage rate is 5.5% for the 15-year mortgage and 6.5% for the 30-year mortgage.
a. What are the monthly principal and interest payments for each loan?
b. What is the total amount of interest paid on each loan?
c. Overall, how much more interest is paid by choosing the 30-year mortgage?
Phil Pittman is interested in a fixed-rate mortgage for $100,000. He is undecided whether to choose a 15- or 30-year mortgage. The current mortgage rate is 5.5% for the 15-year mortgage and 6.5% for the 30-year mortgage.
a. What are the monthly principal and interest payments for each loan?
b. What is the total amount of interest paid on each loan?
c. Overall, how much more interest is paid by choosing the 30-year mortgage?
Explanation
Verified
Verified
(a)
Consider the mortgage
at
for 1...
Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
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