Problemyou plan to take out a 300000 conventional fixed, Ask an Expert

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Problem:

You plan to take out a $300,000 conventional fixed rate mortgage. You will either take out a 15 year mortgage or a 30 year mortgage. The interest rate on the 15 year mortgage is 3.5%. The interest on the 30 year mortgage is 4.5%.

Required:

Question 1: What will be the monthly mortgage payment for the 15 year mortgage?

Question 2: What will be the monthly mortgage payment for the 30 year mortgage?

A. $3,042.80 and $4,294.02

B. $3,059.68 and $4,341.25

C. $1,539.49 and $2,170.63

D. $1,520.06 and $2,144.65

Elucidate in detail and specify all computation and methods.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91146746

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