Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman

Exercise 37

A Denny's Restaurant franchisee is looking for a 20-year mortgage with 90% financing to build a new location costing $775,000, The Spring Creek Bank is offering an 8% mortgage with
discount points; Foremost Savings Loan is offering a 7.5% mortgage with 4 discount points. The franchisee is unsure which mortgage is the better deal and has asked for your help.
a. What is the total interest paid on each loan
b. Taking into account the discount points, which lender is offering a better deal and by how much