Dan is considering borrowing $459,000 to purchase a new condo. Based on that information, answer the following questions. Show all work.

1. Calculate the monthly payment needed to amortize a 2.5% fixed-rate 30-year mortgage loan.
2. Calculate the monthly amortization payment if the loan in (a.) was for 15 years instead.
3. In a few sentences, explain the effect of a smaller loan period. How does it influence the monthly payment and interest?

Answer rating: 100% (QA)

Loan Amount 459000 Interest rate 25 or 0025 Solution Monthl... View the full answer