Question

Compare the monthly payments and total loan costs for the following pairs of loan options. Assume...

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 6.65%

Option 2 a 15- year loan at an APR of 6.25%

1.) Find the monthly payment for each option

2.) Find the total amount paid for each option

3.) Compare the two options to determine which is the better economic option.

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Compare the monthly payments and total loan costs for the following pairs of loan options. Assume...
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 of7.15​%. Option​ 2: a​ 15-year loan at an APR of 6.75​%. 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...
Compare the monthly payment and total payment for the following pairs of loan options. Assume that...
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 ​$160,000 loan. Option​ 1: a​ 30-year loan at an APR of 10​%. Option​ 2: a​ 15-year loan at an APR of 9​%. ---------------------------------------------------------------- Find the monthly payment for each option. The monthly payment for option 1 is​what. The monthly payment for option 2 is what. ​(Do not round until the...
Compare the monthly payment and total payment for the following pairs of loan options. Assume that...
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 ​$160,000 loan. Option​ 1: a​ 30-year loan at an APR of 10​%. Option​ 2: a​ 15-year loan at an APR of 9​%. ---------------------------------------------------------------- Find the monthly payment for each option. The monthly payment for option 1 is ​what. The monthly payment for option 2 is what. ​(Do not round until...
You need a $188,500 loan. Compute the monthly payment for each of the loan options listed...
You need a $188,500 loan. Compute the monthly payment for each of the loan options listed below. Assume that loans are a fixed rate. Option 1: a 30 year-loan at an APR of 5.75% Option 2: a 15 year loan at 4.5%
you need a 90,000 loan option 1 a 30 year loan at an apr of 6.65%...
you need a 90,000 loan option 1 a 30 year loan at an apr of 6.65% option 2 a 15 year loan at an apr of 6.35% find the monthly payment for each option find the total anount paid for eaxh option which appears to be the better option
You need a loan of ​$140,000 to buy a home. Calculate your monthly payments and total...
You need a loan of ​$140,000 to buy a home. Calculate your monthly payments and total closing costs for each choice below. Briefly discuss how you would decide between the two choices.Choice​ 1: 20​-year fixed rate at 7​% with closing costs of ​$2300 and no points.Choice​ 2: 20​-year fixed rate at 6.5​% with closing costs of ​$2300 and 5 points. What is the monthly payment for choice​ 1? ​$nothing ​(Do not round until the final answer. Then round to the...
Compare the costs of each car. Calculate the interest to be paid on both, month payments,...
Compare the costs of each car. Calculate the interest to be paid on both, month payments, total payments and the APR? Car A ??????Car B $24,000 purchase price????$21,5000 purchase price $3,000 Down payment ????$1,500 Down payment 2.9% Interest rate ?????6.9% Interest rate 4 year loan with monthly payments???6 year loan with monthly payments
You need a loan of ​$175 comma 000 to buy a home. Calculate your monthly payments...
You need a loan of ​$175 comma 000 to buy a home. Calculate your monthly payments and total closing costs for each choice below. Briefly discuss how you would decide between the two choices. Choice​ 1: 30​-year fixed rate at 4​% with closing costs of ​$1300 and no points. Choice​ 2: 30​-year fixed rate at 3.5​% with closing costs of ​$1300 and 2 points.
You need to take a loan of $1,500. You have two repayment options: - Option 1:...
You need to take a loan of $1,500. You have two repayment options: - Option 1: Short-term 6% interest loan with a term of 1 year - Option 2: 1-year simple interest amortized loan at 6% interest, monthly payments Calculate the lump sum payment for plan A. Then calculate the monthly payment for plan B. Explain how you arrived at your answer.
A loan officer presents two options: 20-year FRM of $1,200,000 at an interest rate of 8.875%...
A loan officer presents two options: 20-year FRM of $1,200,000 at an interest rate of 8.875% annually with a brokerage fee of $15,500 20-year FRM of $1,200,000 loan at an interest rate of 7.875% annually with a brokerage fee of $15,500 and 1 point in upfront fees. Both loans require monthly payments, and your firm anticipates paying off the loan at maturity. a)Find the effective cost of borrowing (ECB) for each loan to determine the best option. (20 points) ECB...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT