Question: The real estate in Problem 11 is to be purchased with a fifteen-year loan with an annual percentage rate of 8.5%. What is the difference in the monthly payments for the fifteen-year and thirty-year loans? How much does using the fifteen-year loan save in interest?
Problem: Determine the monthly payment for a thirty-year real estate loan with an annual percentage rate of 8.5% and an initial principal of $200,000. How much interest is paid over the life of the loan?