fixed rate and have the same closing costs.You need a $140,000 loan.Option 1: a 30-year loan at an APR of 7.5%.Option 2: a 15-year loan at an APR of 7%.Find the monthly payment for each option.The monthly payment for option 1 is $The monthly payment for option 2 is $(Do not round until the final answer. Then round to the nearest cent as needed.)Find the total amount paid for each option.The total payment for option 1 is $The total payment for option 2 is $(Use the answers from the previous step to find this answer. Round to the nearest cent as needed.)Compare the two options. Which appears to be the better option?OA. Option 2 will always be the better optionOB. Option 1 is the better option, but only if the borrower plans to stay in the same home for the entire term ofthe loan.OC. Option 1 will always be the better option.D. Option 2 is the better option, but only if the borrower can afford the higher monthly payments over theentire term of the loan.

APR(Annual percentage rate) refers to annual cost paid by the borrower for the loan taken which…

Answered: You need a $140,000 loan. Option 1: a…

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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Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $110,000 loan. Option 1: a 30-year loan at an APR of 7%. Option 2: a 15-year loan at an APR of 6.5%. Find the monthly payment for each option. The monthly payment for option 1 is $ The monthly payment for option 2 is $ (Do not round until the final answer. Then round to the nearest cent as needed.) Find the total amount paid for each option. The total payment for option 1 is $ The total payment for option 2 is $ (Use the answers from the previous step to find this answer. Round to the nearest cent as needed.) Compare the two options. Which appears to be the better option? OA Option 2 will always be the better option B. Option 2 is the better option, but only if the borrower can afford the higher monthly payhents over the entire term of the loan. O C. Option 1 is the better option, but only if the borrower plans to…
Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $110,000 loan. Option 1: a 30-year loan at an APR of 9%. Option 2: a 15-year loan at an APR of 8.5%. Find the monthly payment for each option. The monthly payment for option 1 is $ The monthly payment for option 2 is $ (Do not round until the final answer. Then round to the nearest cent as needed.) Find the total amount paid for each option. The total payment for option 1 is $ The total payment for option 2 is $ (Use the answers from the previous step to find this answer. Round to the nearest cent as needed.) Compare the two options. Which appears to be the better option? OA. Option 2 will always be the better option B. Option 2 is the better option, but only if the borrower can afford the higher monthly payments over the entire term of the loan. OC. Option 1 is the better option, but only if the borrower plans to…
Compare the monthly payment and total payment for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $130,000 loan. Option 1: a 30-year loan at an APR of 9%. Option 2: a 15-year loan at an APR of 8%. Find the monthly payment for each option. The monthly payment for option 1 is $ The monthly payment for option 2 is $ (Do not round until the final answer. Then round to the nearest cent as needed.) ...
Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $170,000 loan. Option 1: a 30-year loan at an APR of 8.25% Option 2: a 15-year loan at an APR of 7.8% Find the monthly payment for each option. The monthly payment for option 1 is $ enter your response here. The monthly payment for option 2 is $ enter your response here. ( Do not round until the final answer. Then round to the nearest cent as needed.)
Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $110,000 loan. Option 1: a 30-year loan at an APR of 9%. Option 2: a 15-year loan at an APR of 8.5%. ... Find the monthly payment for each option. The monthly payment for option 1 is $ The monthly payment for option 2 is $ (Do not round until the final answer. Then round to the nearest cent as needed.) Find the total amount paid for each option. The total payment for option 1 is $ The total payment for option 2 is $ (Use the answers from the previous step to find this answer. Round to the nearest cent as needed.) Compare the two options. Which appears to be the better option? imum budgeted Next
Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $60,000 loan. Option 1: a 30-year loan at an APR of 7.15%. Option 2: a 15-year loan at an APR of 6.75%. Find the monthly payment for each option.
Compare the monthly payment and total payment for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $200,000 loan. Option 1: a 30-year loan at an APR of 8.5%. Option 2: a 15-year loan at an APR of 7.5%. Find the monthly payment for each option. The monthly payment for option 1 is $ The monthly payment for option 2 is $ (Do not round until the final answer. Then round to the nearest cent as needed.) Find the total payment for each option. The total payment for option 1 is $ The total payment for option 2 is $ (Round to the nearest cent as needed.)
Compare the monthly payment and total payment for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $180,000 loan. Option 1: a 30-year loan at an APR of 7.5%. Option 2: a 15-year loan at an APR of 6.5%. Question content area bottom Part 1 Find the monthly payment for each option. The monthly payment for option 1 is $enter your response here. The monthly payment for option 2 is $enter your response here. (Do not round until the final answer. Then round to the nearest cent as needed.) Part 2 Find the total payment for each option. The total payment for option 1 is $enter your response here. The total payment for option 2 is $enter your response here. (Round to the nearest cent as needed.) Part 3 Compare the two options. Which appears to be the better option? A. Option 1 will always be the better option. B. Option 1 is the better option, but only if the borrower…
Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $160,000 loan. Option 1: a 30-year loan at an APR of 8%. Option 2: a 15-year loan at an APR of 7.5%. Question content area bottom Part 1 Find the monthly payment for each option. The monthly payment for option 1 is $enter your response here. The monthly payment for option 2 is $enter your response here. (Do not round until the final answer. Then round to the nearest cent as needed.)
Assume you need a $87,000.00 loan for a home. Compute the monthly payment for each option. Assume that the loans are fixed rate and that closing costs are the same in both cases. Round to the nearest penny.Option 1: a 30 year-loan at an APR of 7.25%The monthly payment for Option 1 would be $.Option 2: a 15 year-loan at an APR of 6.5%The monthly payment for Option 2 would be $
Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $80,000 loan. Option 1: a 30-year loan at an APR of 8.15%. Option 2: a 15-year loan at an APR of 7.75%. Question content area bottom Part 1 Find the monthly payment for each option. The monthly payment for option 1 is $ enter your response here. The monthly payment for option 2 is $ enter your response here.
Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $110,000 loan. Option 1: a 30-year loan at an APR of 8.5%. Option 2: a 15-year loan at an APR of 8%. Find the monthly payment for each option. The monthly payment for option 1 is $ 845.80 The monthly payment for option 2 is $ 1051.22 (Do not round until the final answer. Then round to the nearest cent as needed.) Find the total amount paid for each option. The total payment for option 1 is $ The total payment for option 2 is $ (Use the answers from the previous step to find this answer. Round to the nearest cent as needed.)

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