MATH 114DISCUSSIONBOARDFORUM1 PROMPTTopic – Mortgages: 15-year vs. 30-year1.Say that a family is purchasing a house with a $200,000 mortgage and an annual interest rate of 6%. The size of their monthly payment will depend on the term of the mortgage.The Excel function “pmt” can be used to compute these monthly mortgage payments. The 3 arguments of function “pmt” are: 1) the monthly interest rate (0.06/12); 2) the total number of monthly payments; and 3) the mortgage amount.a.Find the monthly payments if the $200,000 was financed over 15 years.The monthly payment for a 15 year loan is $1687.71b.Find the monthly payments if the $200,000 was financed over 30 years.
c.Multiply your answer to part (a) by the number of payments to find how much thefamily would need to pay in total over the life of the 15-year loan. Subtract the principal amount from this to give the amount of interest paid over the life of the loan.