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Mortgages, loans taken to purchase a property, involye reguiar payments at fixed intervals and afe treated as reverse onmutsesi Mortgagea are the reverse of annuities,

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Mortgages, loans taken to purchase a property, involye reguiar payments at fixed intervals and afe treated as reverse onmutsesi Mortgagea are the reverse of annuities, because you get a lump-sum amount as a loan in the beginning. and then you make monthly parments to the iendet. Youve decided to buy a house that is valued at $1 million. You nave $100,000 to use as a down paryment on the house, and wank to take out a mortgage for the remainder of the purchase price. Your bank has approved your $900,000 mortgage, and is aftering a standard jo-year mortgage at a 12% foxed nominal interest rate (called the loan's annual percentage rate or APR). Under this ioan proposal, your mortgage payment will be per month. (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 ajo-year mortgage is too long and you will pay a lot of money on interest. If your bank approves a 15 -year, $900,000 loan at a fixed nominal interest rate of 12a (APR), than the difference in the monthily payment of the 15 -resr mortgage and 30 -year mertgage will be ? (Note: Round the final value of any interest rate used to four decimal places.) It is likely that you wont fike the prospect of paying more money each month, but if you do take out a 15 -year mortgage, you wul make tar fewer payments and will pay a lot less in interest. How much more total interest will you pay over the life of the loan ir you take out a jo-year mortgage instead of a 15 -year mortgage? 31,388,431.80 $2,916,035.08 11,630,349,52 51,777,192.70 Which of the following statements is not true about mortgages? Mortgages always have a fixed nominal interest rate. Mortgages are examples of amertized loans. The ending balance of an amortized loan contract will be Eero: The payment allocated toward principal in on amortized foan is the residual bolance that isy the difference between totai payment and the interest dun

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