You are considering a $100,000 loan for 30 years. A new bank is currently offering an APR of 6% and your current bank is offering an APR of 6.25%. How much is the difference in total payments over the life of the loan?

Question

Quizplus · Accepted Answer

The difference in total payments over the life of the loan is calculated by finding the total payment for each loan and subtracting them. The monthly payment for the 6% APR loan is lower than the 6.25% APR loan, leading to a total payment difference of $5,821 over 30 years.

You Are Considering a $100,000 Loan for 30 Years