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Pottigages, loans faken to purchase a property, involve regular payments at fixed intervals and are treated as reverse anninties. Mortgages are the reverse of annuities,

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Pottigages, loans faken to purchase a property, involve regular payments at fixed intervals and are treated as reverse anninties. Mortgages are the reverse of annuities, because you get a lump-sum amount as a loan in the begnning, and then you make monthly payments to the lendec. You've deoded to buy a house that is valued at $1 milion. You have $300,000 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 $700,000 mortgage, and is offering a standard 30 -year mortgage at a 12% fixed nominal interest rate (called the loan's annual percentage rate or APR). Under this loan proposal, your mortgage payment wil per month. (Note: Round the final value of any interest rate used to four deomal places.) Your friends suggest that you take a 15-year mortgage, because a 30-year montgage is too long and you will pay a lot of money on interest. If your bank approves a 15-year, $700,000 loan at a fixed nominal interest rate of 12% (APR), then the difference in the monthly payment of the 15 -year mortgage and 30 -year mortgage wall be ?(Note: Round the final value of any interest rate used to four decimal places.) It is lkely that you won't like the prospect of paying more money ead month, but of you do take out a 15 -year mortgage, you wal make far fewer payments and will pay a lot less in interest. How much more total interest will you pay over the lfe of the loan if you take out a 30 -year mortgage instead of a 15-year mortgage? $1,079,892.00$1,490,250.96$1,274,272.56$1,382,261.76 Which of the following statements is not true about mortgages? Mortgages always have a fixed nominal interest rate. The ending balance of an amortized fon contract will be zero, The payment alocated toward principat in an amortized loan is the residual balance-that is, the difference between total payment and the interest due. Mortgages are examples of amortzed loans

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