Chrome File Edit View History B Bookmarks Profiles b Window Help OM 100% Alicia Sierra QE O Written Assignment 6 Part 1: M X + - C slcc.instructure.com/courses/726719/assignments/9131487 G Update : Online Tutoring Zoom Warning!You can submit answers to make sure they are correct make before proceeding to the next. It is a good idea to also keep a written account of the given values (e.g. original price of the house, annual interest rate, etc.) as you will be asked to refer back to these values as you go. Once you have "submitted" an answer to a question, you can click back and forth between the parts if you need to, though you may need to click on "Reattempt this question" at the top of the page. Don't worry, your correct answers will be saved! Round all of your answers to the nearest cent when appropriate to do so. Some questions are programmed to allow for slight variations in the answers due to rounding errors, BUT it is important that you don't round values you are using in formulas. Only round your final answers. Part III: 15 Year Mortgage In this part of the lab you will examine the values associated with a 15 year mortgage. You will use the same purchase price, down payment, and loan amount from Question 1. Start by confirming you have those correct values. Original purchase price (from Question 1) = $ Down Payment = $ Loan Amount = $ Typically, the annual interest rate on a 15 year loan is lower than on a 30 year loan. Assume that you have found a 15 year loan with an annual interest rate of 3.75 % . Evnrecs the annual interest rate as a decimal 29Chrome File Edit View History B Bookmarks Profiles b Window Help OM 100% Alicia Sierra QE O Written Assignment 6 Part 1: M X + C slcc.instructure.com/courses/726719/assignments/9131487 G Update : PM Typically, the annual interest rate on a 15 year loan is lower than on a 30 year loan. Assume that you have found a 15 year loan with an annual interest rate of 3.75 % . lege Express the annual interest rate as a decimal. The annual interest rate expressed as a decimal is As you did for the 30 year mortgage in Question 1, compute the monthly payment for the 15 year loan. Again, use the loan formula to find the monthly payment, d. The loan formula solved for d is: PO( #) d = (1 - ( 1 + * ) - Nk Hint: what value will you use for NV this time? Monthly Payment = $ Assuming you make the monthly payment each month for 15 years, what will be the total amount repaid? Total payments = $ Find the total amount of interest paid over the 15 years. To do so, subtract the amount originally borrowed from the total payments. 29 OChrome File Edit View History B Bookmarks Profiles b Window Help OM 100% Alicia Sierra QE O Written Assignment 6 Part 1: M X + C Aslcc.instructure.com/courses/726719/assignments/9131487 G Update : PM ( 1 - ( 1 + # ) ) lege Hint: what value will you use for NV this time? PM Monthly Payment = $ Assuming you make the monthly payment each month for 15 years, what will be the total amount repaid? Total payments = $ Find the total amount of interest paid over the 15 years. To do so, subtract the amount originally borrowed from the total payments. Total interest paid = $ Compare the total interest paid with this 15 year mortgage to the total interest paid with the 30 year mortgage (from Question 1). How much would you save in interest if you use the 15 year mortgage? Difference in interest paid = $ Submit Question 29
