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klio [65]
1 year ago
8

It is likely that you won’t like the prospect of paying more money each month, but if you do take out a 15-year mortgage, you wi

ll make far fewer payments and will pay a lot less in interest. How much more total interest will you pay over the life of the loan if you take out a 30-year mortgage instead of a 15-year mortgage?.
Business
1 answer:
faust18 [17]1 year ago
8 0

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

#SPJ1

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kiruha [24]

Answer:

The business cycle is crucial for businesses of all kinds because it directly affects demand for their products. Boom: high levels of consumer spending, business confidence, profits and investment. Prices and costs also tend to rise faster. Unemployment tends to be low as growth in the economy creates new jobs.

5 0
2 years ago
Chez Fred Bakery estimates the allowance for uncollectible accounts at 3% of the ending balance of accounts receivable. During 2
yan [13]

Answer:

$50,120

Explanation:

Account receivable on December 31, 2021 × 3% = 600

Account receivable on December 31, 2021 = $600 ÷ 3% = $20,000

Accounts receivable on January 1, 2021 = $20,000 - $118,000 + $148,000 + $120 = $50,120

Therefore, the balance of accounts receivable on January 1, 2021 is $50,120.

5 0
3 years ago
______ are the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior. Th
11111nata11111 [884]

Answer:

The correct answer is d. Values

Explanation:

values are sort of like the roots of our beliefs that are so deeply embedded in our mindset they almost influence and indirectly governs all aspects of our being. The values are deeply held, can be personal and acts as the foundation for morals, thoughts, ideas, innovations, etc...

7 0
3 years ago
To ensure that a lead is actually a prospect, the salesperson must _________________ the lead. Group of answer choices Qualify Q
Nezavi [6.7K]

Answer:

be sure

Explanation:

6 0
3 years ago
You want to accumulate $1 million by your retirement date, which is 25 years from now. You will make 25 deposits in your bank, w
Rom4ik [11]

Answer:

First deposit will be $11,213.87

Explanation:

To derive how much the first deposit must be, the deposit can be derived by using payment formula for growing annuity

P = FV x (r - g) / [(1 + r)^n - (1 + g)^n]

When FV = $1,000,000

r = 7%

g = 3%

n = 25

Hence, First payment will be:

P = 1,000,000 * (7% - 3%) / (1.07^25 - 1.03^25)

P = 1,000,000 * 4% / 5.427433 - 2.093778

P = 40,000 / 3.333655

P = 11998.842

P = $11,998.84

However, this formula is applicable when the payments are made at the end of the year. In this case the payments are upfront, occurring today. We need to adjust this first payment to reflect the early payment.

Hence, first payment = $11,998.84  / (1 + 7%)

First payment =  $11,998.84  / (1 + 0.07)

First payment = $11,998.84  / 1.07

First payment = 11213.8691588785

First payment = $11,213.87

7 0
3 years ago
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