Question

Part 2: Mortgage Costs Leon plans to take out a $240,000 home loan at 4.8% compounded monthly. He can choose a 15-year, 30-year, or 50-year mortgage. Help him by computing the monthly payment amount and the total he will pay for the loan for each time period. 15-year mortgage: A) Monthly Payment: B) Total paid for this loan: 30-year mortgage: A) Monthly Payment: B) Total paid for this loan: 50-year mortgage: A) Monthly Payment: B) Total paid for this loan:

Answer 1

son me samula R= pri [1- litij where R= monthly payment PV = present value of loan فلسطحية للمود n number of period 15. year mortgage Py = $ 240,000 i = 0.048 = 0.004 12 na 15x12 = 180 RE 240,000 x0.004. [1- (1+0.0049-18] - 240000X0.004 (-0.48745 ) = 240000 X01004 = 960 0 51255 0.512515 R=$1,812.98 Monthly payment) Total paid for this loan 187298 x 180 = $337, 136.40

30- yeas mortgage Pvz $ 240.000 na BOX 120 360° R = 240,000 X 0.004 - Ľl - (140.004)-360] = - 960 =1259:19 960 [1 - 0.237609)_ 0.762891 Monthly payment = $ 12.89.19 Total paid for this dean = $1259.19 x 360 - : $ 453,308:40 50 year morgage 9 50 x 12 = 600 960 240000 x 0.004 [!- (1+0.004) 600] [1 - 0.091153] Pe 900 = $1056. 2013 0.908847 Monthly payment = $ 1056:28 Total paid for the loan = $1056-28 X 600 - = $ 633,768