Incomplete question. Here's the remaining part that completes question;
<em>(Use the Table 15.1(a) and Table 15.1(b)). (Round intermediate calculations and your final answers to the nearest cent.)</em>
<em />
<em>Monthly payment </em>
<em>a. 25 Years, 10.5% </em>
<em>b. 25 Years, 11.5% </em>
<em>c. 25 Years, 12.5% </em>
<em>d. 25 Years, 14.0%</em>
<u>Answer:</u>
<u>Monthly payment is $104 for each assumption</u>
<u>Total interest cost</u>
<u>a. $3,276</u>
<u>b. $3,588</u>
<u>c. $3,900</u>
<u>d. $4,368</u>
<u>Explanation:</u>
Total balance left = $39,000-$7800 (20% of Cost of cottage)=$31,200
a) For monthly payment
$31,200/300 months (equivalent For 25 years) = $104
Total cost of Interest= monthly Interest% x monthly payment x 300 months= 10.5% x $104 x 300 months = $3,276.
b) For monthly payment
$31,200/300 months (equivalent For 25 years) = $104
Total cost of Interest= monthly Interest% x monthly payment x 300 months= 11.5% x $104 x 300 months = $3,588.
c) For monthly payment
$31,200/300 months (equivalent For 25 years) = $104
Total cost of Interest= monthly Interest% x monthly payment x 300 months= 12.5% x $104 x 300 months = $3,900.
d) For monthly payment
$31,200/300 months (equivalent For 25 years) = $104
Total cost of Interest= monthly Interest% x monthly payment x 300 months= 14% x $104 x 300 months = $4,368.
