Find the monthly payment for the 15- year option. The price of a home is $170,000. The bank requires a 15% down payment. The buyer is offered two mortgage options: 15-year fixed at 7.5% or 30-year fixed at 7.5%. Calculate theamount of interest paid for each option. How much does the buyer save in interest with the 15-year option? Use the following formula to determine the regular payment amount.PMT=РP(A)[₁-(₁+1)]ntFind the monthly payment for the 15-year option.$(Round to the nearest dollar as needed.)CID

Data given: Price of home=$170,000 Down payment=15% n=15 years Rate=7.5% Required: Find the…

Answered: Find the monthly payment for the 15-…

Business

Finance

Find the monthly payment for the 15- year option.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

100%

Find the monthly payment for the 15- year option.

The price of a home is $170,000. The bank requires a 15% down payment. The buyer is offered two mortgage options: 15-year fixed at 7.5% or 30-year fixed at 7.5%. Calculate the
amount of interest paid for each option. How much does the buyer save in interest with the 15-year option? Use the following formula to determine the regular payment amount.
PMT=
Р
P(A)
[₁-(₁+1)]
nt
Find the monthly payment for the 15-year option.
$
(Round to the nearest dollar as needed.)
CID

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The price of a home is $150,000. The bank requires a 15% down payment. The buyer is offered two mortgage options: 15-year fixed at 6.5% or 30-year fixed at 6.5%. Calculate the amount of interest paid for each option. How much does the buyer save in interest with the 15-year option? Use the following formula to determine the regular payment amount. PMT= -nt [-(+9)] Find the monthly payment for the 15-year option. $ (Round to the nearest dollar as needed.) CIT
Suppose you are buying your first condo for $190,000, and you will make a $10,000 down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at 3.5% nominal interest rate, with the first payment due in one month. What will your monthly payments be? You are not required to show calculations. However to receive credit you must provide the inputs used (N, PMT, FV, I/Y, PV) to solve. If you utilize a template, you can copy and paste the section used in the submission. $808.28 $853.18 $527.78
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