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Use PMT= to determine the regular payment amount, rounded to the nearest dollar. The price of a small cabin is $35,000. The b
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Answer #1
Formula Result
Monthly Payment for 20 years =33250*(8.5%/12)/(1-(1+(8.5%/12))^(-12*20)) 288.55
Monthly Payment for 30 years =33250*(8.5%/12)/(1-(1+(8.5%/12))^(-12*30)) 255.66
Total Payment for 20 years =288.55*12*20 69,252.00
Total Payment for 30 years =255.66*12*30 92,037.60
Difference in 30 years and 20 years options =92037.6 - 69252 22785.6
Saving of interest in option of 20 years $22,785.6
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