Mortgagec, foans taken to purchase a property, involve regular payments at fixed intervals and are treated as reverse annuities. Mortgages are the reverse of annuties, because you get a lump-surm amount as a loan in the beginning, and then you make monthly payments to the lender. You've decided to buy a house that is yalued at $1 million. You have $200,000 to use as a down payment on the house, and want to take out a mortgage for the remainder of the purchase price, Your bank has approved your 4800,000 martgage, and is offering a standard 30-year mortgage at a 9.6 fixed nominal interest rate (called the loan's annual percentage rate of AFR). Under this loan proposali, your mortgage payment will be per manth, (Note: Round the final value of any interest rate used to four decimal places.) Your friends suggest that you take a 15 -year mortgage, because a 30 -year mortgage is too long and you will pay a lot of money on interest, If yout bank approves a 15-yeat $800,000 loan at a foced nominal interest rate of 9% (APR), then the difference in the monthly payment of the 15y year moctope and 30 yeat mortgage wili be 7(Note: Round the final valoe of any interest rate used to four dedimal places, ) It is Iikely that you wont like the prospect of paying more meney each menth, but if you do take out a 15 -year mortgage, you will make far fewer payments and will pay a lot less in interest. How much more total interect will you pay over the life of the loan it you take out a 30 -year mortgage instead of a 15 -year mortgage? $1,010,958.69 41,095,664,93 5856,769.40 \$1,182,341,77