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You have the option to take out a 30-year mortgage that has an APR of 4.5% or a 20-year mortgage that has an APR of 3.75%. When answering the following questions, remember to base your mortgage payments on the amount you need to borrow rather than the entire purchase price. 30-year mortgage If you take out a 30-year mortgage with an APR of 4.5%, what will your monthly payment be? (Round your answer to the nearest cent.) $ x If you make the payment you just calculated every month for 30 years, how much will you pay altogether? $ What dollar amount of your total 30-year mortgage payments go to interest? Hint: The dollar amount f your interest is the difference between your total payments and the amount you borrowed. $ What percentage of your total 30-year mortgage payments go to interest? (Round your percentage to one decimal place.) % 20-year mortgage If you take out a 20-year mortgage with an APR of 3.75%, what will your monthly payment be? (Round your answer to the nearest cent.) $ If you make the payment you just calculated every month for 20 years, how much will you pay altogether? $ What dollar amount of your total 20-year mortgage payments go to interest? Hint: The dollar amount f your interest is the difference between your total payments and the amount you borrowed. $ What percentage of your total 20-year mortgage payments go to interest? (Round your percentage to one decimal place.) % 30-year vs 20-year mortgage How much money will you save altogether by taking out a 20-year mortgage rather than a 30-year mortgage

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