a viweekly Determine the new monthly payment. Determine the difference in the interest paid over a 25-year period on a 259,000 mortgage at 7.5% compounded monthly and at 11.5% compounde d monthlv

## Step 1: Calculate the monthly payment for the 7.5% mortgage### We use the formula for monthly mortgage payments: , where is the monthly payment, is the principal loan amount, is the monthly interest rate, and is the total number of payments. Here, 259,000 r = \frac{0.075}{12} = 0.00625 n = 25 \times 12 = 300 M = 259000 \times \frac{0.00625(1+0.00625)^{300}}{(1+0.00625)^{300}-1} \approx \ ## Step 2: Calculate the total interest paid for the 7.5% mortgage### Total interest paid is the total amount paid minus the principal. Total amount paid is the monthly payment multiplied by the number of payments.Total amount paid 1928.61 \times 300 = \ Total interest paid 578,583 - \ 319,583 r = \frac{0.115}{12} \approx 0.009583 M = 259000 \times \frac{0.009583(1+0.009583)^{300}}{(1+0.009583)^{300}-1} \approx \ ## Step 4: Calculate the total interest paid for the 11.5% mortgage### We use the same method as in Step 2.Total amount paid 2662.80 \times 300 = \ Total interest paid 798,840 - \ 539,840 = \ 319,583 = \