Assume a selling price of $88,000, a down payment of $24,000, and a mortgage at 13% for 30 years. If the loan was for 25 years, what would be the difference in the total interest cost of the loan?

Question

Quizplus · Accepted Answer

25 years: 88,000 - 24,000 = 64,000; 64,000 / 1,000 = 64; 64 × 11.28 = 721.92; 721.92 × 25 × 12 = 216,576; 216,576 - 64,000 = 152,576;
30 years: 64 × 11.07 = 708.48; 708.48 × 30 × 12 = 255,052.80; 255,052.80 - 64,000 = 191,052.80;
191,052.80 - 152,576 = 38,476.80

Assume a Selling Price of $88,000, a Down Payment of $24,000