A Homeowner Could Take Out a 15-Year Mortgage at a 5.5

A homeowner could take out a 15-year mortgage at a 5.5% annual rate on a $195,000 mortgage amount, or she could finance the purchase with a 30-year mortgage at a 6.1% annual rate. How much total interest over the entire mortgage period could she save by financing her home with the 15-year mortgage (to the nearest dollar) ?

A) $230,408
B) $190,105
C) $155,612
D) $144,325
E) $138,612 195,000 = Pmt *PVIFA (0.055/12, 180 months) ; Pmt of 1,593.31 *180 = 91,796; 195,000 = Pmt *PVIFA (0.061/12, 360 months) ; Pmt of 1,181.69 *360 = 230,408; 230,408 - 91,796 = 138,612