Yölanda is taking out a mortgage for S145.000 to buy a new house and is deciding between the offers from two lene She wants to know which one would be the better deal over the life of the mortgage loan, and by how much. Answer each part. Do not round intermediate computations, and round your answers to the nearest cent. If necessary, refer to the (a) Her credit union has offered her a 30-year mortgage loan at an annual interest rate of 5.4%. Find the monthly payment. (b) A bank has offered her a 15-year mortgage loan at an annual interest rate of 5.2%. Find the monthly payment.
Yölanda is taking out a mortgage for S145.000 to buy a new house and is deciding between the offers from two lene She wants to know which one would be the better deal over the life of the mortgage loan, and by how much. Answer each part. Do not round intermediate computations, and round your answers to the nearest cent. If necessary, refer to the (a) Her credit union has offered her a 30-year mortgage loan at an annual interest rate of 5.4%. Find the monthly payment. (b) A bank has offered her a 15-year mortgage loan at an annual interest rate of 5.2%. Find the monthly payment.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Yolanda is taking out a mortgage for S145,000 to buy a new house and is deciding between the offers from two lenders.
She wants to know which one would be the better deal over the life of the mortgage loan, and by how much.
Answer each part. Do not round intermediate computations, and round your answers to the nearest cent.
If necessary, refer to the
(a) Her credit union has offered her a 30-year mortgage loan at an annual interest rate of
5.4%. Find the monthly payment.
(b) A bank has offered her a 15-year mortgage loan at an annual Interest rate of 5.2%.
Find the monthly payment.
(c) Suppose Yolanda pays the monthly payment each month for the full term. Which
lender's mortgage loan would have the lowest total amount to pay off, and by how
much?
O Credit union
The total amount paid would be S
less than to the bank.
O Bank
The total amount paid would be S less than to the credit union.
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