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.

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.

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Question

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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