Answer:
The interest saved is $49569.228 or $49569.
Explanation:
Total price of Condominium=$256,000
Downpayment=30% of total price=30%x$256,000= 76800
Amount Financed=Total Payment-Downpayment
Amount Financed=256000-76800=179200
Annual Interest rate=3.05%
Monthly interest rate ==0.25146%
The montly installment is calculated as follows:
Here
- M is the montly installment
- P is the amount financed
- r is the montly rate in percentage
- n is the number of years
- t is the number of months in a year
Case 1 when the number of years is 30.
So the equation becomes
So the total amount paid in installments is
So the equation becomes
So the interest is given as
So a total interest of $93395.132 is paid when the amount is financed for 30 years.
Case 2 when the number of years is 15.
So the equation becomes
So the total amount paid in installments is
So the equation becomes
So the interest is given as
So a total interest of $43825.904 is paid when the amount is financed for 15 years.
The savings on interest if the condominium is financed for 15 years is given as
The interest saved is $49569.228 or $49569.