Question 24 A thru C

23. You are purchasing a home for $215,000. You will be making monthly payments with an interest rate of 4.2% compounded monthly. a. What is your monthly payment if you are to pay it off in 30 years? Round your answer to the nearest penny. b. Suppose you can afford to increase your monthly payment by $100. How many years will it take to pay off this mortgage? Round your answer to one decimal place. 24. You are purchasing a home for $150,000. You plan to put in a down payment of 20%. a. OPTION 1: You will mortgage the rest at 3.9% compounded monthly for 30 years. What is your monthly payment? How much interest is paid? b. OPTION 2: You will mortgage the rest at 3.3% compounded monthly for 20 years. What is your monthly payment? How much interest is paid? c. If you could take OPTION 2, how much would you save over OPTION 1