>> Business Economics
You apply for a $240,000 15-year mortgage (monthly payment). Based on your credit standing, the appropriate annual rate is 3.576%. However, you are steered into a loan with an annual interest rate of 4.576%.
a. What is the monthly payment for your mortgage if the annual interest rate is 3.576%
b. What is the monthly payment for your mortgage if the annual interest rate is 4.576%
c. How much more interests will you pay over the life of the mortgage if you are charge 4.576% rather than 3.576%?