Assume that you are about to build a new $300,000 home and that you will have a 15-year mortgage. Using an interest rate of 12%, what will the annual mortgage payments be? How much interest will be paid to the bank over the life of the loan? (either the correct formula(s) or the correct key strokes must be shown here to receive credit).
Answer the question assuming that you make the payments semi-annually instead of annually. Explain the difference in the total interest paid to the bank.
Calculation of annual Payment of loan:- Principal = $300,000 Interest rate = 12% Years = 15 Annual Payment = Principal * ( R... View the full answer