Use PMT = to determine the regular payment amount, rounded to the nt nearest dollar. In terms of paying less in interest over the full term of the mortgage, which is more economical for a $200,000 mortgage: 30-year fixed at 7% or 20-year fixed at 6.5%?

College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter8: Sequences And Series
Section8.4: Mathematics Of Finance
Problem 16E: Mortgage What is the monthly payment on a 30-year mortgage of $80,000 at 9% interest? What is the...
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Use PMT=
to determine the regular payment amount, rounded to the
nt
nearest dollar.
In terms of paying less in interest over the full term of the mortgage, which is more economical
for a $200,000 mortgage: 30-year fixed at 7% or 20-year fixed at 6.5%?
O A. The 20-year fixed rate at at 6.5% is more economical.
O B. They are the same.
O C. The 30-year fixed rate at at 7% is more economical.
Transcribed Image Text:Use PMT= to determine the regular payment amount, rounded to the nt nearest dollar. In terms of paying less in interest over the full term of the mortgage, which is more economical for a $200,000 mortgage: 30-year fixed at 7% or 20-year fixed at 6.5%? O A. The 20-year fixed rate at at 6.5% is more economical. O B. They are the same. O C. The 30-year fixed rate at at 7% is more economical.
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