What is the difference in interest paid between a 30-year mortgage loan and a 15-year mortgage loan both of $72700 if the annual interest rate is 5% a. $27262.50 b. $54525.00 c. $37012.40 d. $10348.38

What is the difference in interest paid between a 30-year mortgage loan and a 15-year mortgage loan both of $72700 if the annual interest rate is 5% a. $27262.50 b. $54525.00 c. $37012.40 d. $10348.38

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...

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Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

Question

What is the difference in interest paid between a 30-year mortgage loan and a 15-year mortgage loan both of $72700 if the annual interest rate is 5%

$27262.50

$54525.00

$37012.40

$10348.38

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