Your boss, who never took an engineering economy course is buying a new house and needs your help in answering some questions. The loan amount will be in the "jumbo loan" category of $600,000 ant (1) 7.0% per year compounded monthly over 30 years, or (2) 6.624% compounded monthly over 15 years. there are no loan initiation fees, points paid, or other charges. prepayment, if desired, can be done without penalty.
a. What is the monthly payment for plan (1) and for plan (2)
b. What is the effective annual interest rate for plan (1) and for plan (2)
c. What is the total interest paid over the life of the loan for plan (1) and for plan (2)