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

You need a ?$110,000 loan.

Option? 1: a? 30-year loan at an APR of 7.25?%.

Option? 2: a? 15-year loan at an APR of 6.8%.

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1.) Find the monthly payment for each option.

The monthly payment for option 1 is what?

The monthly payment for option 2is?what?.

?(Do not round until the final answer. Then round to the nearestcent as? needed.)

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Find the total payment for each option.

The total payment for option 1 iswhat?

The total payment for option 2 iswhat?

?(Round to the nearest cent as? needed.)

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Compare the two options. Which appears to be thebetter? option?

A. Option 2 is the better? option, but only if the borrower canafford the higher monthly payments over the entire term of theloan.

B. Option 1 will always be the better option.

C. Option 1 is the better? option, but only if the borrowerplans to stay in the same home for the entire term of the loan.

D. Option 2 will always be the better option