Question
Compare the monthly payments and total loan costs for the following pairs of loan aplions. Assume that both loans a...
Compare the monthly payments and total loan costs for the following pairs of loan aplions. Assume that both loans are fed rate and have the same closing costs You need a $170 000 loan Option 1 a 30 year loan at an APR of 7% Option 2 a 15 year loan at an APR 65% Find the monthly payment for each option The monthly payment for option is The monthly payment for option is (Do not found the final answer the round to the contended)
Answers
Option 1
Loan amount (PV) = 170,000
Number of periods, nper = 30 * 12 = 360 months
APR = 7%, rate = 7%/12
Monthly payment ,PMT =
= $ 1,131.01
Option 2
Number of periods = 15* 12 = 180 months
APR = 6.5%, rate = 6.5%/12
Monthly payment , PMT =
= $ 1480.88
pmt(7%/12,360, -170000 PMT(rate, nper, pv, [fv], [type])-pmt(6.5%/12,180,170000 PMT(rate, nper, pv, [fv], [type])
![pmt(7%/12,360, -170000 PMT(rate, nper, pv, [fv], [type])](http://img.homeworklib.com/questions/60f3c4c0-047e-11ea-a8e9-c513b76ffa10.png?x-oss-process=image/resize,w_560)
= $ 1,131.01![-pmt(6.5%/12,180,170000 PMT(rate, nper, pv, [fv], [type])](http://img.homeworklib.com/questions/61544fe0-047e-11ea-ad8a-15a2e449a1b6.png?x-oss-process=image/resize,w_560)
= $ 1480.88Similar Solved Questions
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