Asked by Rose
The price of a small cabin is $45,000. The bank requires a 5% down payment. The buyer is offered two mortgage options: 20-year fixed at 6.56.5% or 30-year fixed at 6.56.5%. Calculate the amount of interest paid for each option. How much does the buyer save in interest with the 20-year option?
Answers
Answered by
Reiny
All kinds of problems with this question.
It is invalid to compare "interest paid" when you don't have the same focal dates.
Are there monthly payments?
I sure hope you weren't thinking of using simple interest.
Since the interest rates are the same, the interest paid is the same.
It is invalid to compare "interest paid" when you don't have the same focal dates.
Are there monthly payments?
I sure hope you weren't thinking of using simple interest.
Since the interest rates are the same, the interest paid is the same.
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