Use the table to answer the question.
$\text { cellpadding }=" 0 \text { " cellspacing }=" 0 \text { " align }=\text { "center" width }=" 60 \% \text { " border }=" 1 "$

Effect of Down Payment on the Cost of a $ \$ 120,000 $ Home with Interest at $ 8 \% $

$\begin{array}{ccccc}
\text { Down Payment } & \text { Percent } & \text { Total Payment } & \text { Total Payment } & \text { Total Payment } \
\$ 0 & & 20 \text { Years } & 25 \text { Years } & 30 \text { Years } \
\$ 6,000 & 0 \% & \$ 240,895 & \$ 277,854 & \$ 316,987 \
\$ 12,000 & 5 \% & \$ 228,850 & \$ 263,961 & \$ 301,136 \
\$ 24,000 & 10 \% & \$ 216,806 & \$ 250,068 & \$ 285,289 \
\$ 30,000 & 20 \% & \$ 192,715 & \$ 222,282 & \$ 253,588 \
\$ 36,000 & 30 \% & \$ 168,626 & \$ 194,499 & \$ 221,890
\end{array}$ What is wrong, if anything, with the following statement? Explain your reasoning. For a $120,000 loan with interest rate 8% and 30% down, the total amount that can be saved by changing the term from 30 years to 25 years is $27,391, because the total amount of payments changes from $221,890 to $194,499.

Question

Use the table to answer the question. 
 $\text { cellpadding }=" 0 \text { " cellspacing }=" 0 \text { " align }=\text { "center" width }=" 60 \% \text { " border }=" 1 ">$

Effect of Down Payment on the Cost of a $ \$ 120,000 $ Home with Interest at $ 8 \% $

$\begin{array}{ccccc}
\text { Down Payment } & \text { Percent } & \text { Total Payment } & \text { Total Payment } & \text { Total Payment } \
\$ 0 & & 20 \text { Years } & 25 \text { Years } & 30 \text { Years } \
\$ 6,000 & 0 \% & \$ 240,895 & \$ 277,854 & \$ 316,987 \
\$ 12,000 & 5 \% & \$ 228,850 & \$ 263,961 & \$ 301,136 \
\$ 24,000 & 10 \% & \$ 216,806 & \$ 250,068 & \$ 285,289 \
\$ 30,000 & 20 \% & \$ 192,715 & \$ 222,282 & \$ 253,588 \
\$ 36,000 & 30 \% & \$ 168,626 & \$ 194,499 & \$ 221,890
\end{array}$ What is wrong, if anything, with the following statement? Explain your reasoning. For a $120,000 loan with interest rate 8% and 30% down, the total amount that can be saved by changing the term from 30 years to 25 years is $27,391, because the total amount of payments changes from $221,890 to $194,499.

Quizplus · Accepted Answer

The Answer of Use the table to answer the question. 
 $\text { cellpadding }=" 0 \text { " cellspacing }=" 0 \text { " align }=\text { "center" width }=" 60 \% \text { " border }=" 1 ">$

Effect of Down Payment on the Cost of a $ \$ 120,000 $ Home with Interest at $ 8 \% $

$\begin{array}{ccccc}
\text { Down Payment } & \text { Percent } & \text { Total Payment } & \text { Total Payment } & \text { Total Payment } \
\$ 0 & & 20 \text { Years } & 25 \text { Years } & 30 \text { Years } \
\$ 6,000 & 0 \% & \$ 240,895 & \$ 277,854 & \$ 316,987 \
\$ 12,000 & 5 \% & \$ 228,850 & \$ 263,961 & \$ 301,136 \
\$ 24,000 & 10 \% & \$ 216,806 & \$ 250,068 & \$ 285,289 \
\$ 30,000 & 20 \% & \$ 192,715 & \$ 222,282 & \$ 253,588 \
\$ 36,000 & 30 \% & \$ 168,626 & \$ 194,499 & \$ 221,890
\end{array}$ What is wrong, if anything, with the following statement? Explain your reasoning. For a $120,000 loan with interest rate 8% and 30% down, the total amount that can be saved by changing the term from 30 years to 25 years is $27,391, because the total amount of payments changes from $221,890 to $194,499.