For a loan of $100,000 at a rate of 6% for fifteen years, the payment is about $843 a month. For the same loan amount, at an interest rate of 7.5%, you must increase the life of the loan to keep the same payment. The term must extend over 18 years instead of 15 years.

Question

Mathematics

jaishawnmitchell

May 17, 2019, 2:39:10 AM

13

For a loan of $100,000 at a rate of 6% for fifteen years, the payment is about $843 a month. For the same loan amount, at an interest rate of 7.5%, you must increase the life of the loan to keep the same payment. The term must extend over 18 years instead of 15 years.

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(1) Answers

Answer 1 · 2019-05-17T13:34:32+03:00

For the same amount of loan and monthly payment if the interest rate is 6%, the loan must last for 15 years if the interest rate is 7.5% the loan must last for 18 years So, the greater the interest rate, the longer the loan has to be paid.