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Compare two loans:Loan 1: $175,000; 8% annual (monthly payments); 30 years.Loan 2: $175,000; 7% annual (monthly payments); 15 years.If you pay an additional $250 per month in additional principle on Loan 1 ONLY, which loan pays off sooner

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Answer:

Following are the responses to the given question:

Explanation:

For the First loan payment period is value:

[tex]\to NPER(\frac{8\%}{12},-250-PMT(\frac{8\%}{12},12\times 30,-175000),175000)=215\ months[/tex]

For the second loan payment period is value:

[tex]\to 15\times 12=180 \ months[/tex]

that's why the loan will be paid off soon.