Incomplete question. Here's the remaining part that completes question;
(Use the Table 15.1(a) and Table 15.1(b)). (Round intermediate calculations and your final answers to the nearest cent.)
Monthly payment
a. 25 Years, 10.5%
b. 25 Years, 11.5%
c. 25 Years, 12.5%
d. 25 Years, 14.0%
Answer:
Monthly payment is $104 for each assumption
Total interest cost
a. $3,276
b. $3,588
c. $3,900
d. $4,368
Explanation:
Total balance left = $39,000-$7800 (20% of Cost of cottage)=$31,200
a) For monthly payment
$31,200/300 months (equivalent For 25 years) = $104
Total cost of Interest= monthly Interest% x monthly payment x 300 months= 10.5% x $104 x 300 months = $3,276.
b) For monthly payment
$31,200/300 months (equivalent For 25 years) = $104
Total cost of Interest= monthly Interest% x monthly payment x 300 months= 11.5% x $104 x 300 months = $3,588.
c) For monthly payment
$31,200/300 months (equivalent For 25 years) = $104
Total cost of Interest= monthly Interest% x monthly payment x 300 months= 12.5% x $104 x 300 months = $3,900.
d) For monthly payment
$31,200/300 months (equivalent For 25 years) = $104
Total cost of Interest= monthly Interest% x monthly payment x 300 months= 14% x $104 x 300 months = $4,368.
