Question
The Mendez family is considering a mortgage loan of$351,000at an annual interest rate of6.85%. (a) How much greater is their mortgage payment if the term
The Mendez family is considering a mortgage loan of$351,000at an annual interest rate of6.85%.
(a) How much greater is their mortgage payment if the term is 20 years rather than 30 years?
$
(b) How much less is the amount of interest paid over the life of the 20-year loan than over the life of the 30-year loan?
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
