Question
The price of a home is $120,000. The bank requires a 15% down payment. The buyer if offered two mortgage options: 15-year fixed at 9.5%
The price of a home is $120,000. The bank requires a 15% down payment. The buyer if offered two mortgage options: 15-year fixed at 9.5% or 30-year fixed at 9.5%. Calculate the amount of interest paid for each option. How much does the buyer save in interest with the 15-year option? Use the PMT formula to determine the regular payment amount.
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Step: 1
The PMT is by PMT Lr1rn1rn1 where PMT Monthly payment L Loan amount 120000115 102000 r ...
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Financial Analysis with Microsoft Excel
Authors: Timothy R. Mayes, Todd M. Shank
7th edition
1285432274, 978-1305535596, 1305535596, 978-1285432274
