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Problem $7-8($LG $7-3)$

You plan to purchase a $$310,000$ house using either a $25-$year mortgage obtained from your local savings bank with a rate of $7\mathrm{.}50$ percent, or a $10-$year mortgage with a rate of $6\mathrm{.}50$ percent. You will make a down payment of $20$ percent of the purchase price.

$$Calculate the amount of interest and, separately, principal paid on each mortgage. What is the difference in interest paid?

$$Calculate your monthly payments on the two mortgages. What is the difference in the monthly payment on the two mortgages?