Harriet Marcus is concerned about the financing of a home. She saw a small cottage that sells for $39,000. Assuming that she puts 20% down, what will be her monthly payment and the total cost of interest over the cost of the loan for each assumption

Incomplete question. Here's the remaining part that completes question;

(Use the Table 15.1 (a) and Table 15.1 (b)). (Round intermediate calculations and your final answers to the nearest cent.)

Monthly payment

a. 25 Years, 10.5%

b. 25 Years, 11.5%

c. 25 Years, 12.5%

d. 25 Years, 14.0%

Answer:

Monthly payment is $104 for each assumption

Total interest cost

a. $3,276

b. $3,588

c. $3,900

d. $4,368

Explanation:

Total balance left = $39,000-$7800 (20% of Cost of cottage) = $31,200

a) For monthly payment

$31,200/300 months (equivalent For 25 years) = $104

Total cost of Interest = monthly Interest% x monthly payment x 300 months = 10.5% x $104 x 300 months = $3,276.

b) For monthly payment

$31,200/300 months (equivalent For 25 years) = $104

Total cost of Interest = monthly Interest% x monthly payment x 300 months = 11.5% x $104 x 300 months = $3,588.

c) For monthly payment

$31,200/300 months (equivalent For 25 years) = $104

Total cost of Interest = monthly Interest% x monthly payment x 300 months = 12.5% x $104 x 300 months = $3,900.

d) For monthly payment

$31,200/300 months (equivalent For 25 years) = $104

Total cost of Interest = monthly Interest% x monthly payment x 300 months = 14% x $104 x 300 months = $4,368.