1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
The comparative balance sheets for Kingbird Corporation appear below:
otez555 [7]
Banana is good and good for me
7 0
2 years ago
On Jordan's 20th birthday he decides to invest 10,000 that he has saved. He will not be adding any money to the initial investme
levacccp [35]

Answer:

452592.56

Explanation:

10000(1.1)^40=452592.555682

7 0
3 years ago
Quantitative Problem 2: Hadley Inc. forecasts the year-end free cash flows (in millions) shown below.
Katarina [22]

The stock price is mathematically given as

P=$57.64

<h3>What is the stock price?</h3>

Generally, the equation for is Value after year  mathematically given as

V=\frac{(FCF for year 5*Growth rate)}{(WACC-Growth rate)}\\\\V = \frac{(55.4*1.05)}{(0.09-0.05)}

V= $1454.25

Hence, the current value is mathematically given as

I=Discounting factor equal to the future cash flows multiplied by their present value

I=\frac{-22.76}{1.09} + \frac{38.8}{1.09^2}+ \frac{43.4}{1.09^3}+\frac{52.3}{1.09^4}+\frac{55.4}{1.09^5}+\frac{1454.25}{1.09^5}

I=$1063.508769

current value for ordinary stock

I'=$1037.508769million

In conclusion, the stock price is

P=(1037.508769/18)

P=$57.64

Read more about the stock price

brainly.com/question/15021152

#SPJ1

5 0
2 years ago
If there's upward pressure on price how does this affect the supply side of the market?
taurus [48]

If there's upward pressure on price, there would be an increase in the quantity supplied.

<h3>What the relationship between price and the quantity supplied?</h3>

There is a positive relationship between price and the quantity supplied. When there is an increase in price, the quantity supplied increases all things being equal.

The positive relationship between price and the quantity supplied is a result of the desires to earn more profit. So when price increases, in order to earn higher income, producers would increase the quantity supplied.  This postulation is in line with the law of supply.

To learn more about the law of supply, please check: brainly.com/question/26374465

#SPJ1

6 0
1 year ago
The term __________ refers specifically to geologic mountain building.
White raven [17]
'Mountain formation' or 'orogeny'
4 0
3 years ago
Other questions:
  • Gear Electronics used to buy all of its component parts from a local plant in Cleveland, Ohio, but this year it has decided to b
    5·1 answer
  • In relation to an approach to get into customers’ minds, _____ refers to the collection of associations and emotions unconscious
    6·1 answer
  • Tropetech Inc.’s FCFs are expected to grow at a constant rate of 4.62% per year in the future. The market value of Tropetech Inc
    11·1 answer
  • One important distinguishing feature of valid arguments is that __________.
    7·1 answer
  • Mark Johnson invests a fixed percentage of his salary at the end of each year. This year he invested $1500 For the next 5 years,
    10·1 answer
  • For the current year ($ in millions), Funky Freightways had $92 in pretax accounting income. This included warranty expense of $
    10·1 answer
  • Using a combination of different modes of transportation to move freight in order to exploit the best features of each mode is c
    12·1 answer
  • A good with many close substitutes is likely to have relatively ___________(elastic,inelastic) demand, since consumers can easil
    12·1 answer
  • If 1200 dollars is invested at an annual interest rate r compounded monthly, the amount in the account at the end of 3 years is
    7·1 answer
  • A farmer and an investor negotiate a Futures Contract where Tomatoes will be sold
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!