A loan officer states, "Thousands of dollars can be saved by switching to a 15-year mortgage from a 30-year mortgage." Calculate the difference in payments on a 30-year mortgage at 9% interest versus a 15-year mortgage with 8.5% interest.Both mortgages are for $100,000 and have monthly payments.What is the difference in total dollars that will be paid to the lender under each loan? (Round the monthly payment amounts to 2 decimal places.Both interest rates are compounded monthly.)
A)$89,211
B)$98,406
C)$112,410
D)$124,300

Question

Quizplus · Accepted Answer

The total payment for the 30-year mortgage is $241,676.38, and for the 15-year mortgage, it is $129,266.40. The difference is $112,410.

A Loan Officer States, "Thousands of Dollars Can Be Saved