Nicole has the choice of taking out a 30-year loan for $165,000 at 9.1% interest, compounded monthly, or the same loan at 25 years for a higher monthly payment. how much more is the monthly payment for the 25-year loan than the monthly payment for the 30- year loan

The monthly payment for 25 years is $56.50 more than the monthly payment for 30 years loan.

Step-by-step explanation:

The formula to be used is :

1st scenario:

p = 165000

n =

r = = 0.00758

Putting the values in the formula we get

= $1339.045

2nd scenario:

p = 165000

n =

r = = 0.00758

Putting the values in the formula we get

= $1395.540

The difference in the monthly payments are =

dollars ≈ $56.50

Therefore, the monthly payment for 25 years is $56.50 more than the monthly payment for 30 years loan.

Apex: 56.47

Step-by-step explanation:

apex