Finance

AnswerWith respect to the given scenario , the following tables show the calculation of the bone marrow of John s retribution over the life of his loan card A indicates the calculation of the 5-year adjustable rate mortgage with a beginning rate of 6 . On the other passel , confuse B shows the calculation of John s annual payment with 7 .5 fix rate of by-lineTable A150 ,000 /5 years adjustable cultivate true(a) engage amount Annual payment interestYear 1 30 ,000 6 1800 31 ,800Year 2 30 ,000 7 2100 32 ,100Year 3 30 ,000 8 2400 32 ,400Year 4 30 ,000 9 2700 32 ,700Year 5 30 ,000 10 3000 33 ,000Table B150 ,000 /5 years Fix Rate Actual interest amount Annual payment interestYear 1 30 ,000 7 .

5 2250 32 ,250Year 2 30 ,000 7 .5 2250 32 ,250Year 3 30 ,000 7 .5 2250 32 ,250Year 4 30 ,000 7 .5 2250 32 ,250Year 5 30 ,000 7 .5 2250 32 ,250From the given calculation it shows that the payment to his 150 ,000 trap loan in adjustable rate mortgage protrude is 162 ,000 and this is higher compared to 161 ,250 rate mortgage plan . With this , we may order that the fix rate plan of 7 .5 annual interest is a great dealScenario : John buys a house...If you want to mock up a full essay, order it on our website: OrderEssay.net

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