How much will he owe after making payments for $8$ years? Examine the remaining balance

formulas below for each loan and explain what the numbers that have replaced the variables in

the formulas represent.

For the $20$ year loan: $=1048\mathrm{.}31[$

$1(1+$

$\mathrm{.}033$

$12$

$)$

$(24096)$

$\mathrm{.}033$

$12]$

For the $30$ year loan: $=765\mathrm{.}86[$

$1(1+$

$\mathrm{.}029$

$12$

$)$

$(36096)$

$\mathrm{.}029$

$12]$

D$.$ How much in total interest will he pay over the term of each loan? Show all of your

calculations. What assumptions did you make when doing these calculations?