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Your banker suggests that, rather than obtaining a 30-year mortgage, you should simply obtain a 15-year...

Your banker suggests that, rather than obtaining a 30-year mortgage, you should simply obtain a 15-year loan for the same amount. The rate on this loan is 3.75% APR. How much is the monthly payment?

House cost= 220,000

Down Payment 50,000

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Answer #1
Loan amount = 220000-50000 170000
we have to use financial calculator to solve this problem
Put in calculator
PV -170000
FV 0
I =3.75%/12 0.31250%
N =15*12 180
Compute PMT $1,236.28
Therefore monthly payment = $1,236.28
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