<h2>Answer:</h2>
The price of the house = $ 100000
The down payment is 20 % of 100000 means dollars
So, loan amount will be = dollars
<u>Case A:</u>
30-year mortgage at a rate of 7 %
p = 80000
r =
n =
EMI formula is :
Putting the values in formula we get;
=
Monthly payment = $532.22
So, total amount paid in 30 years will be =
Interest paid will be = dollars
<u>Case B:</u>
15-year mortgage at a rate of 7 %.
Here everything will be same as above. Only n will change.
n =
Putting the values in formula we get;
=
Monthly payment = $719.04
Total amount paid in 15 years will be =
Interest paid will be = dollars
