I am confused about this one…
Consider a mortgage for $ 100,000. There are two options – a 15-year term with an interest rate of 6.0% and a 30-year term with an interest rate of 5.75%.
a) What is the monthly payment for each option (rounded to the nearest dollar)?
b) What is the total payout for each option?
c) Which option would you choose, and why?
Any help with this one would be appreciated!