Question
Please show your work and if can use TVM calculator Booker graduated 10 years ago and now wants to buy his first condo. He has
Please show your work and if can use TVM calculator
Booker graduated 10 years ago and now wants to buy his first condo. He has saved enough for a 100,000 down payment and now wants to get a 400,000 mortgage to cover the cost of his new 500,000 home. His bank is offering him either a 3% 15 year mortgage or a 4% 30-year mortgage.
a. How much money he have to pay each month for 3% 15 year mortgage?
b. How much money he have to pay each month for 4% 30 year mortgage?
c. What would be the total amount he would have to pay for the 3% 15 year mortgage (interest and principal) ?
d. What would be the total amount he would have to pay for the 4% 30 year mortgage (interest and principal)?
e. Which mortgage do you think you would choose and why?
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