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4. United Bank offers a 15-year mortgage at an APR of 6.2%. Capitol
Bank offers a 25-year mortgage at an APR of 6.5%. Marcy wants to
borrow $120,000.
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a. What would the monthly payment be from United Bank?
b. What would the total interest be from United Bank? Round to
the nearest ten dollars.
c. What would the monthly payment be from Capitol Bank?
d. What would the total interest be from Capitol Bank? Round to
the nearest ten dollars.
e. Which bank has the lower total interest, and by how much?
f. What is the difference in the monthly payments?
g. How many years of payments do you avoid if you decide to take
out the shorter mortgage?