Question 1200939
<font face="Times New Roman" size="+2">


For each of the loans, calculate the interest rate <i>per period</i> by dividing the annual interest rate by the number of payments per year.  Express this number as a decimal.  Call this number *[tex \Large r]


*[tex \Large PMT] is the monthly payment


*[tex \Large P] is the present value, i.e., the original loan amount.


*[tex \Large n] is the number of payments per year, and *[tex \Large t] is the number of years.


For each of the loans, calculate the following:


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ PMT\ =\ \frac{Pr}{1\,-\,\(1\,+\,r\)^{-nt}}]


Those two calculations will give you the option A and option B answers for part (a).


Multiply the answer for part (a) Option A by 360, and then subtract 200,000 to find the total interest that will be paid if the mortgage is held to maturity.


Multiply the answer for part (a) Option B by 180, and then subtract 200,000.


The difference between those two calculations will be the answer to part (b)




																
John
*[tex \LARGE e^{i\pi}\ +\ 1\ =\ 0]
My calculator said it, I believe it, that settles it
*[illustration darwinfish.jpg]

From <https://www.algebra.com/cgi-bin/upload-illustration.mpl> 
I > Ø
*[tex \Large \ \
*[tex \LARGE \ \ \ \ \ \ \ \ \ \  
								
{{n}\choose{r}}
</font>