In terms of paying less in interest, which is more economical for a $50,000 mortgage a 30-year fixed-rate at 7% or a 15-year fixed-rate at 6.5%? How much is saved in interest? Use the following formula to determine the regular payment amount.
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PMT =
[1-(1) ")
Determine which loan is more economical. Choose the correct answer below.
The 15-year 6.5% loan is more economical.
The 30-year 7% loan is more economical.
The buyer will save in interest approximately $|
(Do not round until the final answer. Then round to the nearest thousand dollars.)