Decreasing the number of years of a loan decreases the amount of interest repaid over the term of the loan. Suppose a dental hygienist has the option of a 30-year loan or a 25-year loan of $365,000 at an annual interest rate of 3.75%. (a) Calculate the monthly payment (in dollars) for each loan. (Round your answers to the nearest cent.) 30-year loan $? 25-year loan $? (b) Calculate the savings in interest (in dollars) by using the 25-year loan. (Round your answer to the nearest cent.) $ ?

Decreasing the number of years of a loan decreases the amount of interest repaid over the term of the loan. Suppose a dental hygienist has the option of a 30-year loan or a 25-year loan of $365,000 at an annual interest rate of 3.75%. (a) Calculate the monthly payment (in dollars) for each loan. (Round your answers to the nearest cent.) 30-year loan $? 25-year loan $? (b) Calculate the savings in interest (in dollars) by using the 25-year loan. (Round your answer to the nearest cent.) $ ?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 14P

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