SOLUTION: The Brown's want to purchase a house that costs $130,000. They plan to take out a $90,000. mortgage and put $40,000 as a down payment. The bank informs them with a 20-year mortga

Algebra ->  Percentage-and-ratio-word-problems -> SOLUTION: The Brown's want to purchase a house that costs $130,000. They plan to take out a $90,000. mortgage and put $40,000 as a down payment. The bank informs them with a 20-year mortga      Log On


   

Question 66404: The Brown's want to purchase a house that costs $130,000. They plan to take out a $90,000. mortgage and put $40,000 as a down payment. The bank informs them with a 20-year mortgage their monthly cost would be $752.40 and with a 30-year mortgage their monthly cost would be $660.60. Determine the amount they would save on the cast of the house if they selected the 20-year mortgage rather than the 30-year mortgage.
Answer by rcmcc(152) About Me  (Show Source):
You can put this solution on YOUR website!
the first information about the amount of the house is un-needed to answer the question. all you need is the amount cost per month.
because the 20 year period has 240 months. it would cost
240x$752.40=$180 576
and the 30 year period has 360 months it would cost
360x$660.60=$237 816
so the home owner would save $57 240 taking out the 20 year mortgage.