Answer:
$180
Explanation:
the monthly payment = principal / annuity factor
- principal = $250,000 x 80% = $200,000
- PV annuity factor, 360 periods, 0.38542%= 194.4995527
monthly payment = $200,000 / 194.4995527 = $1,028.28
in total, you will pay $1,028.28 x 360 = $370,180.80, so total interests = $370,180.80 - $200,000 = $170,180.80
the biweekly payment = principal / annuity factor
- principal = $250,000 x 80% = $200,000
- PV annuity factor, 780 periods, 0.178%= 421.62071
monthly payment = $200,000 / 421.62071 = $474.36
in total, you will pay $474.36 x 780 = $370,000.80, so total interests = $370,000.80 - $200,000 = $170,000.80
During the 30 year period, you will be able to save $170,180.80 - $170,000.80 = $180 in interests
