Based on Exhibit 9-9 , what would be the monthly mortgage payments for each of the following situations?

a. $40,000, 15-year loan at 5.5 percent.

b. $76,000, 30-year loan at 6 percent.

c. $65,000, 20-year loan at 7 percent.

What relationship exists between the length of the loan and the monthly payment? How does the mortgage rate affect the monthly payment?

2. Comparing Total Mortgage Payments.

Which mortgage would result in higher total payments?

Mortgage A: $970 a month for 30 years

Mortgage B: $760 a month for 5 years and $1005 for 25 years