(Mortgage Loans MC)
A $525,000 adjustable rate mortgage is expected to have the following payments:
Year Interest Rate Monthly Payment
$2,506.43
$3,059.46
$3,464.78
$3,630.65
1-54%
6-15 6%
16-25 8%
26-30 10%-
A fixed-rate mortgage in the
mount is offered with an interest rate of 4.65%.
What is the difference in the total cost between the two mortgages, rounded to the nearest dollar?
A spreadsheet was used to calculate the correct answer. Your answer may vary slightly depending on the technology used...
O$176,580
$878,626
O $158,184
O $394,911