Compare the monthly payments and total loan costs for the following pairs of loanoptions. Assume that both loans are fixed rate and have the same closing costs.You need a $110,000 loan.Option 1: a 30-year loan at an APR of 8.5%.Option 2: a 15-year loan at an APR of 8%.Find the monthly payment for each option.The monthly payment for option 1 is $ 845.80The monthly payment for option 2 is $ 1051.22(Do not round until the final answer. Then round to the nearest cent as needed.)Find the total amount paid for each option.The total payment for option 1 is $The total payment for option 2 is $(Use the answers from the previous step to find this answer. Round to the nearestcent as needed.)

Monthly Payment on Loan: This monthly payment is computed from the interest charged on the loan and…

Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $110,000 loan. Option 1: a 30-year loan at an APR of 8.5%. Option 2: a 15-year loan at an APR of 8%. Find the monthly payment for each option. The monthly payment for option 1 is $ 845.80.

Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $110,000 loan. Option 1: a 30-year loan at an APR of 8.5%. Option 2: a 15-year loan at an APR of 8%. Find the monthly payment for each option. The monthly payment for option 1 is $ 845.80.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 9FPE: Calculating and comparing add-on and simple interest loans. Eli Nelson is borrowing 10,000 for five...

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Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $110,000 loan. Option 1: a 30-year loan at an APR of 9%. Option 2: a 15-year loan at an APR of 8.5%. Find the monthly payment for each option. The monthly payment for option 1 is $ The monthly payment for option 2 is $ (Do not round until the final answer. Then round to the nearest cent as needed.) Find the total amount paid for each option. The total payment for option 1 is $ The total payment for option 2 is $ (Use the answers from the previous step to find this answer. Round to the nearest cent as needed.) Compare the two options. Which appears to be the better option? OA. Option 2 will always be the better option B. Option 2 is the better option, but only if the borrower can afford the higher monthly payments over the entire term of the loan. OC. Option 1 is the better option, but only if the borrower plans to…
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Compare the monthly payment and total payment for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $180,000 loan. Option 1: a 30-year loan at an APR of 7.5%. Option 2: a 15-year loan at an APR of 6.5%. Question content area bottom Part 1 Find the monthly payment for each option. The monthly payment for option 1 is $enter your response here. The monthly payment for option 2 is $enter your response here. (Do not round until the final answer. Then round to the nearest cent as needed.) Part 2 Find the total payment for each option. The total payment for option 1 is $enter your response here. The total payment for option 2 is $enter your response here. (Round to the nearest cent as needed.) Part 3 Compare the two options. Which appears to be the better option? A. Option 1 will always be the better option. B. Option 1 is the better option, but only if the borrower…
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