9514 1404 393
Answer:
$45,081
Step-by-step explanation:
The amortization formula can be used to find the monthly payment.
A = P(r/12)/(1 -(1 +r/12)^(-12t))
For the 20-year loan with r=0.0705 and P=184,000, the monthly payment is ...
A = $1432.08
The total amount repaid will be ...
12×20×1432.08 = 343,699.20
__
For the 15-year loan with the same parameters, the monthly payment is ...
A = 1658.99
and the total amount repaid is ...
12×15×1658.99 = 298,618.20
The difference in these repayment amounts is the difference in interest charges:
343,699.20 -298,618.20 = 45,081
The 20-year loan will cost $45,081 more than the 15-year loan.
