A restaurant manager has the option of a 30-year loan of $414,000 at an annual interest rate of 3.95% or the same interest rate but on a loan for 15 years. (a) Calculate the monthly payment (in dollars) for the 30-year loan. (Enter a number. Round your answer to the nearest cent.) $ Calculate the monthly payment (in dollars) for the 15-year loan. (Enter a number. Round your answer to the nearest cent.) $ (b) Calculate the savings in interest (in dollars) by using the 15-year loan. (Enter a number. Round your answer to the nearest cent.) $ (c) The term of the 15-year loan is one-half the term of the 30-year loan. Is the monthly payment for the 15-year loan twice that of the 30-year loan? YesNo (d) Is the interest savings for the 15-year loan more or less than one-half of the interest paid on the 30-year loan? moreless

A restaurant manager has the option of a 30-year loan of $414,000 at an annual interest rate of 3.95% or the same interest rate but on a loan for 15 years. (a) Calculate the monthly payment (in dollars) for the 30-year loan. (Enter a number. Round your answer to the nearest cent.) $ Calculate the monthly payment (in dollars) for the 15-year loan. (Enter a number. Round your answer to the nearest cent.) $ (b) Calculate the savings in interest (in dollars) by using the 15-year loan. (Enter a number. Round your answer to the nearest cent.) $ (c) The term of the 15-year loan is one-half the term of the 30-year loan. Is the monthly payment for the 15-year loan twice that of the 30-year loan? YesNo (d) Is the interest savings for the 15-year loan more or less than one-half of the interest paid on the 30-year loan? moreless

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

See similar textbooks

(a)

Calculate the monthly payment (in dollars) for the 30-year loan. (Enter a number. Round your answer to the nearest cent.)
$

Calculate the monthly payment (in dollars) for the 15-year loan. (Enter a number. Round your answer to the nearest cent.)
$

(b)

Calculate the savings in interest (in dollars) by using the 15-year loan. (Enter a number. Round your answer to the nearest cent.)
$

(c)

The term of the 15-year loan is one-half the term of the 30-year loan. Is the monthly payment for the 15-year loan twice that of the 30-year loan?

YesNo

(d)

Is the interest savings for the 15-year loan more or less than one-half of the interest paid on the 30-year loan?

moreless

A restaurant manager has the option of a 30-year loan of $414,000 at an
annual interest rate of 3.95% or the same interest rate but on a loan for
15 years.
(a) Calculate the monthly payment (in dollars) for the 30-year loan. (Enter a
number. Round your answer to the nearest cent.)
$
Calculate the monthly payment (in dollars) for the 15-year loan. (Enter a
number. Round your answer to the nearest cent.)
$
(b) Calculate the savings in interest (in dollars) by using the 15-year loan.
(Enter a number. Round your answer to the nearest cent.)
$
(c) The term of the 15-year loan is one-half the term of the 30-year loan. Is
the monthly payment for the 15-year loan twice that of the 30-year loan?
Yes
No
(d) Is the interest savings for the 15-year loan more or less than one-half of
the interest paid on the 30-year loan?
more
less

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