2. You took out a 30 year mortgage on a new home. Purchase price is $268,000, APR of 4.34%.
a. Monthly payment?
b. Total interest at 30 years? (nearest $)
c. Monthly payment for a 20 year loan?
d. Interest savings for the 20 year compared to 30 year loan?
M
12t
12
P()(¹+)
12t
(1 + 7/72) ¹2
-1
M= monthly payment
P= principal
T= interest rate expressed as a decimal
t number of years