Mortgages, loans taken to purchase a property, involve regular payments at fixed intervals and are treated as reverse annuities, Mortgages are the reverse of annuities, because you get a lump sum 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 valued 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 $600,000 mortgage, and is offering a standard 30-year mortgage at a 9% fixed nominal interest rate (called the loan's annual percentage rate or APR). Under this loan proposal, your mortgage payment will per month. (Note: Round the final value of any interest rate used in decimal form to four decimal places) be 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 your bank approves a 15-year, $800,000 loan at a fixed nominal Interest rate of 9% (APR), then the difference in the monthly payment of the 15-year mortgage and 30-year mortgage will be ? (Note: Round the final value of any interest rate used in decimal form to four decimal places.) It is likely that you won't like the prospect of paying more money each month, but if you do take ta 15-year mortgage, you will make for fewer payments and will pay a lot loss in interest. How much more total interest will you pay over the life of the loan if you take out a 30-year mortgage Instead of a 15-year mortgage 51,096,664 03 $1,010,987.89 $856,769.40 Ch OS: Assignment - The Time Value of Money It is likely that you won't like the prospect of paying more money each month, but if you do take out a 15-year mortgage, you will make for fewer payments and will pay a lot less in interest. How much more total Interest will you pay over the life of the loan if you take out a 30-year mortgage Instead of a 15-year mortgage? Is $1,096,664.83 $1,010,907.89 $856,769.40 $1,182,341.77 Which of the following statements is not true about mortgages? s Mortgages are examples of amortized loan. Every payment made toward an amortized loan consists of two parts-interont and repayment or principal The ending balance of an amortized loan contract will be 100 luctory If the payment is less than the interest due, the ending balance of the loan will decrease Mortgages, loans taken to purchase a property, involve regular payments at fixed intervals and are treated as reverse annuities, Mortgages are the reverse of annuities, because you get a lump sum 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 valued 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 $600,000 mortgage, and is offering a standard 30-year mortgage at a 9% fixed nominal interest rate (called the loan's annual percentage rate or APR). Under this loan proposal, your mortgage payment will per month. (Note: Round the final value of any interest rate used in decimal form to four decimal places) be 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 your bank approves a 15-year, $800,000 loan at a fixed nominal Interest rate of 9% (APR), then the difference in the monthly payment of the 15-year mortgage and 30-year mortgage will be ? (Note: Round the final value of any interest rate used in decimal form to four decimal places.) It is likely that you won't like the prospect of paying more money each month, but if you do take ta 15-year mortgage, you will make for fewer payments and will pay a lot loss in interest. How much more total interest will you pay over the life of the loan if you take out a 30-year mortgage Instead of a 15-year mortgage 51,096,664 03 $1,010,987.89 $856,769.40 Ch OS: Assignment - The Time Value of Money It is likely that you won't like the prospect of paying more money each month, but if you do take out a 15-year mortgage, you will make for fewer payments and will pay a lot less in interest. How much more total Interest will you pay over the life of the loan if you take out a 30-year mortgage Instead of a 15-year mortgage? Is $1,096,664.83 $1,010,907.89 $856,769.40 $1,182,341.77 Which of the following statements is not true about mortgages? s Mortgages are examples of amortized loan. Every payment made toward an amortized loan consists of two parts-interont and repayment or principal The ending balance of an amortized loan contract will be 100 luctory If the payment is less than the interest due, the ending balance of the loan will decrease