Based on the amount borrowed and the term of the loan, the amount more that you will pay in total interest over the life of the loan with the 30-year mortgage is $1,079,892.
<h3>How much more interest is paid?</h3>
The total payment to be made on the 30-year mortgage is:
= 7,200.29 x 30 years x 12 months per year
= $2,592,000
Total interest paid in 30-year mortgage:
= 2,592,000 - 700,000 amount borrowed
= $1,892,000
The total payment to be made on the 15-year mortgage is:
= 8,401.18 x 15 x 12
= $1,512,212.40
Total interest paid in 15-year mortgage:
= 1,512,212.40 - 700,000
= $812,212.40
The total interest that was paid more with the 30 year mortgage than the 15 year mortgage is:
= 1,892,000 - 812,212.40
= $1,079,892
Rest of the question is:
Your friends suggest that you take a 15-year mortgage, because a 30-year mortgage is too long and you will pay a lot of money on interest. If your bank approves a 15-year, $700,000 loan at a fixed nominal interest rate of 12% (APR).
Find out more on interest payments at brainly.com/question/28224394
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