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scoray [572]
3 years ago
5

A loan officer states, "Thousands of dollars can be saved by switching to a 15-year mortgage from a 30-year mortgage." Calculate

the difference in payments on a 30-year mortgage at an interest rate of .75% a month versus a 15-year mortgage with an interest rate of .7% a month. Both mortgages are for $100,000 and have monthly payments. What is the difference in total dollars that will be paid to the lender under each loan?
Business
1 answer:
Lynna [10]3 years ago
6 0

Answer:

$113,465

Explanation:

Calculation to determine difference in total dollars that will be paid to the lender under each loan

First step is to Calculate the difference in payments on a 30-year mortgage at an interest rate of .75% a month

$100,000 = PMT([1 / (0.0075)] − 1 / {(0.0075)[(1.0075)]^30 × 12})

PMT = $804.62

Second step is to Calculate the difference in payments on a 15-year mortgage at an interest rate of .7% a month

$100,000 = PMT([1 / (0.007)] − 1 / {(0.007 )[ 1.007)]^15 × 12})

PMT = $ 978.87

Now let determine the Total difference

Total difference = ($804.62 × 12 × 30) − ($978.87 × 12 × 15)

Total difference= $113,465

Therefore difference in total dollars that will be paid to the lender under each loan is $113,465

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3 years ago
QS 19-10 Computing contribution margin LO P2 D’Souza Company sold 11,500 units of its product at a price of $77.00 per unit. Tot
vivado [14]

Answer: $317,400

Explanation: The first step is to calculate the sales value

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11500 × $77.00 = $885,500

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i. Variable production cost = Units × variable production cost per unit

11500 × $39.70 = $456,550

ii. Variable selling and administrative cost = unit × variable selling and administrative cost per unit

11500 × $9.70 = $111,550

Total variable cost = Variable production cost + variable selling and administrative cost

Total variable cost = $456,550 + $111,550

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7 0
3 years ago
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3 years ago
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i can say is capital

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