3. If you borrow $220,000 at an APR of 3.5 for 25 years, you will pay $1,101.37
per month. If you borrow the same amount at the same APR for 30 years, you
will pay $987.90 per month.
RA
a. What is the total interest paid on the 25-year mortgage?
b. What is the total interest paid on the 30-year mortgage?
c. How much more interest is paid on the 30-year mortgage? Round to the
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nearest dollar.
d. If you can afford the difference in monthly payments, you can take out
the 25-year mortgage and save all the interest from part c. What is the
difference between the monthly payments of the two different mortgages?
Round to the nearest dollar.