How much interest (to the nearest dollar) would be saved on the following loan if the home were financed for 15 rather than 30 years? A $512,000 home bought with a 20% down payment and the balance financed for 30 years at 4.1%

9514 1404 393

  $298,853.76

Step-by-step explanation:

36% of your gross monthly income is ...

  0.36 × $5600 = $2016

If you're already spending $475 on monthly payments, the amount the bank says you can afford for a mortgage loan is ...

  $2016 -475 = $1541

__

The amortization formula can be used to find the corresponding loan value. That formula is ...

  A = P(r/12)/(1 -(1 +r/12)^(-12t))

where A is the monthly payment on a loan of P at interest rate r for t years.

Filling in the known values, we have ...

  1541 = P(.0465/12)/(1 -(1 +.0465/12)^(-12·30)) ≈ 0.00515636808·P

Then the maximum loan you can obtain is ...

  P = $1541/0.00515636808 ≈ $298,853.76

the answer is a

step-by-step explanation:

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step-by-step explanation: