The Home section of many Sunday newspapers includes a

Chapter , Problem 4.1.57

(choose chapter or problem)

The Home section of many Sunday newspapers includes a mortgage table similar to Table 4.3.10 The table gives the monthly payment per $1000 borrowed for loans at various interest rates and time periods. (a) Determine the monthly payment on a (i) $60,000 mortgage at 4% for fifteen years. (ii) $60,000 mortgage at 4% for thirty years. (iii) $60,000 mortgage at 6% for fifteen years. (b) Over the life of the loan, how much money would be saved on a 15-year mortgage of $60,000 if the rate were 4% instead of 6%? (c) Over the life of the loan, how much money would be saved on an 4% mortgage of $60,000 if the term of the loan was fifteen years rather than thirty years? Table 4.3 Interest 15-year 20-year 25-year 30-year rate (%) loan loan loan loan 4.00 7.40 6.06 5.28 4.77 4.50 7.65 6.33 5.56 5.07 5.00 7.91 6.60 5.85 5.37 5.50 8.17 6.88 6.14 5.68 6.00 8.44 7.16 6.44 6.00 6.50 8.71 7.46 6.75 6.32 7.00 8.99 7.75 7.07 6.65 7.50 9.27 8.06 7.39 6.99 8.00 9.56 8.36 7.72 7.34