Compare the monthly payment and total payment for the following pair of $180,000 loan options. Assume that both loans are fixed rate and have the same closing costs. Option 1: A 30-year loan at an APR of 4.65%. Option 2: A 15-year loan at an APR of 3.85% Describe a situation where Option 2 would be the better choice for someone.

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  1. Compare the monthly payment and total payment for the following pair of $180,000 loan options.  Assume that both loans are fixed rate and have the same closing costs. 

 

Option 1: A 30-year loan at an APR of 4.65%. 

 

Option 2: A 15-year loan at an APR of 3.85% 

Describe a situation where Option 2 would be the better choice for someone.  

 

 

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