An $85,000 mortgage is amortized over 30 years at an annual
interest rate of 5.5% compounded monthly.
(a) What are the monthly payments?
PMT = $
(b) How much interest is paid in all?
I = $
Suppose instead that the mortgage was amortized over 15 years at
the same annual interest rate.
(c) What are the new monthly payments?
PMT = $
(d) Now how much interest is paid in all?
I = $
(e) How much is saved by amortizing over 15 years rather than
30?
Savings of $
An $85,000 mortgage is amortized over 30 years at an annual interest rate of 5.5% compounded monthly. (a) What are the
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An $85,000 mortgage is amortized over 30 years at an annual interest rate of 5.5% compounded monthly. (a) What are the
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