In Exercises 1-10, use P M T = P ( r n ) [ 1 − ( 1 + r n ) − n t ] to determine the regular payment amount, rounded to the nearest dollar. In terms of paying less in interest, which is more economical for a $90,000 mortgage: a 30-year fixed-rate at 8% or a 15-year fixed-rate at 7.5%? How much is saved in interest?
In Exercises 1-10, use P M T = P ( r n ) [ 1 − ( 1 + r n ) − n t ] to determine the regular payment amount, rounded to the nearest dollar. In terms of paying less in interest, which is more economical for a $90,000 mortgage: a 30-year fixed-rate at 8% or a 15-year fixed-rate at 7.5%? How much is saved in interest?
Solution Summary: The author explains how to calculate the monthly payment value for the 90,000 mortgage at 8% for 30 years and the lock-in period for both options.
to determine the regular payment amount, rounded to the nearest dollar.
In terms of paying less in interest, which is more economical for a $90,000 mortgage: a 30-year fixed-rate at 8% or a 15-year fixed-rate at 7.5%? How much is saved in interest?
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