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1 0 . The Yang family plans to buy a new house soon and is considering mortgage options. They are considering two options, a 1

10. The Yang family plans to buy a new house soon and is considering mortgage options. They are considering
two options, a 15-year mortgage with an APR of 6.3% or a 30-year mortgage with an APR of 7.8%. Both options
compound interest monthly. Currently the Yang family spends (e) $2,136 each month in rent and
plan to spend the same amount on a mortgage payment. They do not currently have a down payment and
will finance the full price of the home. Round answers to whole numbers.
a. If the Yang family chooses the 15-year mortgage, how much will they be able to borrow? (3 pt)
b. If the Yang family chooses the 30-year mortgage, how much will they be able to borrow? (3 pt)
c. Which option will allow the Yang family to borrow the most? By how much? Respond in a complete
sentence. (3 pt)
d. Under which option will the Yang family spend the most overall? By how much? Respond in a complete
sentence. (4 pt)
Part 5: Reflection
11. In parts 1 through 4 of this project, two different financial options are presented. For each part, choose which
option is better and explain why. Complete sentences should be used in each answer and the explanation
should include at least one result from your previous calculations. (4 x 3 pt =12 pt)
Part 1: Saving for Retirement Options: Start saving for retirement early or wait to save for retirement
Part 2: Buying a Car Options: Save money to buy a car or use a loan to pay for a car
Part 3: Student Loans Options: Pay a loan off over a longer amount of time or shorter amount of time
Part 4: Mortgages Options: Buy a house with a 15-year mortgage or a 30-year mortgage send me exact answer not approximatly

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