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Mortgages, laans taken to purchase a property, involve regular payments at fixed intervals and are treated as reverse annulties. Mortgages are the reverse of anmulies,

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Mortgages, laans taken to purchase a property, involve regular payments at fixed intervals and are treated as reverse annulties. Mortgages are the reverse of anmulies, because you get a lump-sum amount as a loan in the beginning, and then you make monthly poyments to the lender. You've dedded to buy a house that is valued at $1 milion. You have $500,000 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 $500,000 mortgage, and is offering a standard 30 -year mortgage at a 12\% faxed nominal interest rate (called the loan's annual percentage rate or APR). Under this losn proposal, your mortgage payment will be per month. (Note: Round the finai 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 toa long and you will pay a lot of money on interest. If your bank approves a 15 -year, 5500,000 loan at a fxed nominal interest rate of 12% (APR), then the difference in the monthly payment of the 15 -year mortgage and 30 -vear mortgage will be ?(Note: Round the final value of any interest rate used to four decimal places.) It is likely that you wont like the prospect of paying more money each month, but if you do take out a 15 -yeac mortgage, you will make far fewer payments and will pay a lot less in interest. How much more total interest will you pay over the life d the loan if you take out a jo-year mortgage instead of a 15 -year mortgage? $987,328.5151,064,463.55$910,193,47571,350.40 Which of the following statements is not true about mortgages? Mortgoges are examples of amvertized loans. tvery payment made toward an amortired loan consists of two parts-interect and repayment of principal. The ending balance of an amortized ban controct will be zero. If the payment is less than the interest due, the ending balance of the loan wal decrease

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