Overview: This assignment will give you the opportunity to apply what you have learned about Time Value Money to everday life. In this instance, calculating a mortage’s monthy payment and principle.

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Overview:

This assignment will give you the opportunity to apply what you have learned about Time Value Money to everday life. In this instance, calculating a mortage’s monthy payment and principle.

Instructions:

Congratulations!  You have just signed a contract to purchase your first home.  Your purchase price is $300,000 and you plan to put 20% down. Calculate your monthly principal and interest payments for the life of the loan for:

• a 15-year mortgage at 2.875%

• a 30-year mortgage at 3.25%.

Compare and contrast these two options.

• What are the Pros and Cons of each?

Requirements:

• Add the specifics for type of media, length, and format.

• Submit a Word document or Excel spreadsheet.  • At least 1 page in length.

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