Compare the monthly payments and total loan costs for the following pairs of loan options. Assume...

Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs.

You need a $80,000 loan.

Option 1: a 30-year loan at an APR of 7.15%

Option 2: a 15-year loan at an APR of 6.75%

Find the monthly payment for each option.

The monthly payment for option 1 is $___

The monthly payment for option 2 is $___

Find the total amount paid for each option.

The total payment for option 1 is $_____

The total payment for option 2 is $___(Use the answers from the previous step. Round to the nearest cent as needed.)

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Expert Solution

milcah answered 1 year ago

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