Phil Pittman is interested in a fixed-rate mortgage for $200,000. He is undecided whether to choose a 15- or 30-year mortgage. The current mortgage rate is 4.5% for the 15-year mortgage and 5% for the...

Phil Pittman is interested in a fixed-rate mortgage for $200,000. He is undecided whether to choose a 15- or 30-year mortgage. The current mortgage rate is 4.5% for the 15-year mortgage and 5% for the 30-year mortgage. (Round your answers to the nearest dollar. Use this table, if necessary.)

(a)

What are the monthly principal and interest payments (in $) for each loan?

15-year mortgage$ 30-year mortgage$

(b)

What is the total amount of interest (in $) paid on each loan?

15-year mortgage$ 30-year mortgage$

(c)

Overall, how much more interest (in $) is paid by choosing the 30-year mortgage?

Jun 09, 2022

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Phil Pittman is interested in a fixed-rate mortgage for $200,000. He is undecided whether to choose a 15- or 30-year mortgage. The current mortgage rate is 4.5% for the 15-year mortgage and 5% for the...

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