Answer:
$1289.48
Step-by-step explanation:
A financial calculator tells you the payment with the higher interest rate is $1960.51, and that with the lower interest rate is $671.03. The difference in payment amounts is ...
$1960.51 -671.03 = $1289.48
Answer:
The current per month mortgages are $1289.54 less than the earlier per month mortgages.
Step-by-step explanation:
The EMI formula is = [tex]\frac{p\times r\times (1+r)^{n} }{(1+r)^{n}-1 }[/tex]
Here p = 125000
For case 1:
r = 18.75/12/100=0.015625
n = [tex]30\times12=360[/tex]
So, putting values in formula we get :
[tex]\frac{125000\times 0.015625\times (1+0.015625)^{360} }{(1+0.015625)^{360}-1 }[/tex]
= $1960.51
For case 2:
r = 5/12/100=0.004166
n = [tex]30\times12=360[/tex]
So, putting values in formula we get :
[tex]\frac{125000\times 0.004166\times (1+0.004166)^{360} }{(1+0.004166)^{360}-1 }[/tex]
= $670.97
Now we will find the difference between both EMI's
[tex]1960.51-670.97=1289.54[/tex] dollars.
Therefore, the current per month mortgages are $1289.54 less than the earlier per month mortgages.
