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tekilochka [14]
3 years ago
14

Charlie needs a $275,000 mortgage and he'd like to pay it off in 30 years. He is considering two banks. Bank A: 3.5% with monthl

y payments of $1234.87 Bank B: 4% with monthly payments of $1312.89 Charlie doesn't think a 0.5% difference is that much. What is the difference between these two bank loans with total interest paid over the life of the loan?
Mathematics
1 answer:
zubka84 [21]3 years ago
7 0

Answer:

Difference in interest= $41,250

Step-by-step explanation:

To calculate the interest paid on each bank loan we use the following formula

Interest = Principal * Rate * Time

For Bank A

Interest = 275,000 * 0.035 * 30

Interest = $288,750

For Bank B

Interest = 275,000 * 0.04 * 30

Interest = $330,000

Therefore

Difference in interest= 330,000 - 288,750

Difference in interest= $41,250

Therefore if the mortgage is taken from Bank B he will pay an extra $41,250 on the loan.

The 0.5% difference in rates has a large impact over the 30 year term loan

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x = 17

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Now that we know our x-value, we can simply plug in x for our other two expressions.

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Answer:

Ryan's  revenue last month if he sold 16 new books and 25 old books

 is  $337.50.

Step-by-step explanation:

The number of old books sold by Ryan = 25

The cost of each old book = $5.50

⇒ Total amount earned by selling 25 old  books = 25 x $5.50

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