Charlie and Ellen Wilson have a twenty-five-year-old loan for $ 47 , 000 with which they purchased their house. The Wilsons are retired and are living on a fixed income, so they are contemplating paying off their home loan. Their loan is a thirty-year simple interest amortized loan at 4 1 2 % and has no prepayment penalty. They also have savings of $ 73 , 000 , which they have invested in a certificate of deposit currently paying 8 1 4 % interest compounded monthly. Should they pay off their home loan? Why or why not?
Charlie and Ellen Wilson have a twenty-five-year-old loan for $ 47 , 000 with which they purchased their house. The Wilsons are retired and are living on a fixed income, so they are contemplating paying off their home loan. Their loan is a thirty-year simple interest amortized loan at 4 1 2 % and has no prepayment penalty. They also have savings of $ 73 , 000 , which they have invested in a certificate of deposit currently paying 8 1 4 % interest compounded monthly. Should they pay off their home loan? Why or why not?
Charlie and Ellen Wilson have a twenty-five-year-old loan for
$
47
,
000
with which they purchased their house. The Wilsons are retired and are living on a fixed income, so they are contemplating paying off their home loan. Their loan is a thirty-year simple interest amortized loan at
4
1
2
%
and has no prepayment penalty. They also have savings of
$
73
,
000
, which they have invested in a certificate of deposit currently paying
8
1
4
%
interest compounded monthly. Should they pay off their home loan? Why or why not?
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