Assume you borrow $100,000 from a bank to buy a house at 7% interest for 30 years with monthly payments. How much do you need to pay every month? And how much interest will you pay to the bank during year 4 only?
A. monthly payments = approx. $665 ;
interest payment in year4 = $6,731
B. monthly payments = approx. $299 ;
interest payment in year4 = $6,731
C. monthly payments = approx. $1265 ;
interest payment in year4 = $6,731
D. monthly payments = approx. $765 ;
interest payment in year4 = $6,974
E. monthly payments = approx. $665 ;
interest payment in year4 = $6,974