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AlTibbo is buying a new house for one million dollars. He puts 30% down and finances the rest over 30 years with a 4% mortgage, often with a 20% down payment, over 15 years with a 3% mortgage. How much more has AlTibbo paid so far in monthly payments with the 30year mortgage and 4% mortgage, over the 15year mortgage with a 3% mortgage?
Solution:
The monthly payment for the 30year mortgage is $$3000 \cdot (4 / 100) / 12 = 100$$.
The monthly payment for the 15year mortgage is $$ 3000 \cdot (3 / 100) / 12 = 75$$.
Therefore, AlTibbo has paid so far in monthly payments with the 30year mortgage and 4% mortgage, over the 15year mortgage with a 3% mortgage is $$ 100 75 = 25$$