SOLUTION: You now need to secure a mortgage. Assume there are no closing costs or fees and you are taking out a conventional mortgage loan. The amount you owe is $135,000. You have two loans

Algebra ->  Percentages: Solvers, Trainers, Word Problems and pie charts -> SOLUTION: You now need to secure a mortgage. Assume there are no closing costs or fees and you are taking out a conventional mortgage loan. The amount you owe is $135,000. You have two loans      Log On


   

Question 351643: You now need to secure a mortgage. Assume there are no closing costs or fees and you are taking out a conventional mortgage loan. The amount you owe is $135,000. You have two loans to choose from:
Loan A is a 30-year fixed loan at 7.5%
Loan B is a 15-year fixed loan at 6.5%
Assume you have exactly $1150 a month to spend on the mortgage, which loan would you choose? Explain your reasoning.
Answer by rfer(16322) About Me  (Show Source):
You can put this solution on YOUR website!
R=(P(r/12))/(1-(1+r/12)^12t)
R=payment