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

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Advance Math

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 â€‹$110,000 loan.
Optionâ€‹ 1: aâ€‹ 30-year loan at an APR of 7.25â€‹%.
Optionâ€‹ 2: aâ€‹ 15-year loan at an APR of 6.8%.
1.) Find the monthly payment for each option.
The monthly payment for option 1 is what?
The monthly payment for option 2 isâ€‹what?.
â€‹(Do not round until the final answer. Then round to the nearestcent asâ€‹ needed.)
2.) Find the total payment for each option.
The total payment for option 1 iswhat?
The total payment for option 2 iswhat?
â€‹(Round to the nearest cent asâ€‹ needed.)
Compare the two options. Which appears to be thebetterâ€‹ option?
A.Option 2 is the betterâ€‹ 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 betterâ€‹ option, but only if the borrower plansto stay in the same home for the entire term of the loan.
D.Option 2 will always be the better option

Answer & Explanation Solved by verified expert

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Solution Loan 110000Option 1n 30 years adjust for monthly compounding 3012 360APR 725 adjust for monthly compoundingr 0072512 0 0060417Calculate the See Answer

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