Question: You will give a 25% down payment and you will finance the rest. If the current mortgage rates are 8% and you plan to finance

You will give a 25% down payment and you will finance the rest. If the current mortgage rates are 8% and you plan to finance the home for 30 years. Use the information to determine:

COST:$849,500

Est.: $6,538/month

1) Scenario A: What would be your payment if you only make a yearly payment.

2) How much interest you will pay under this scenario.

3) Scenario B: What would be your payment if you make monthly payments?

4) How much interest would you pay under this scenario?

5) What is the difference in terms of interest expense of both Scenarios? Which do you prefer and why? 6) If under Scenario B you pay an additional

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Scenario A Annual payments If you make only one annual payment your payment would be the total amount of interest that accrues over the year This can be calculated using the following formula Annual i... View full answer

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