You want to buy a $218,000 home. You plan to pay 10% as a down payment,...

You want to buy a $218,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan at 6% interest for the rest.

a) How much is the loan amount going to be?

$

b) What will your monthly payments be?

$

c) How much total interest do you pay?

$

d) Suppose you want to pay off the loan in 15 years rather than 30. What will your monthly payment be?

$

e) How much money in interest will you save if you finance for 15 years instead of 30 years?

Expert Solution

jeff jeffy answered 6 months ago

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