K Compare the monthly payment and total payment for the following pairs of loan options. Assume...
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K Compare the monthly payment and total payment for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $160,000 loan. Option 1: a 30-year loan at an APR of 8.5%. Option 2: a 15-year loan at an APR of 7.5%. Find the monthly payment for each option. The monthly payment for option 1 is $ The monthly payment for option 2 is $ (Do not round until the final answer. Then round to the nearest cent as needed.) Find the total payment for each option. The total payment for option 1 is $ The total payment for option 2 is $ (Round to the nearest cent as needed.) Compare the two options. Which appears to be the better option? A. Option 1 is the better option, but only if the borrower plans to stay in the same home for the entire term of the loan. B. Option 1 will always be the better option. OC. Option 2 will always be the better option. OD. Option 2 is the better option, but only if the borrower can afford the higher monthly payments over the entire term of the loan. K Compare the monthly payment and total payment for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $160,000 loan. Option 1: a 30-year loan at an APR of 8.5%. Option 2: a 15-year loan at an APR of 7.5%. Find the monthly payment for each option. The monthly payment for option 1 is $ The monthly payment for option 2 is $ (Do not round until the final answer. Then round to the nearest cent as needed.) Find the total payment for each option. The total payment for option 1 is $ The total payment for option 2 is $ (Round to the nearest cent as needed.) Compare the two options. Which appears to be the better option? A. Option 1 is the better option, but only if the borrower plans to stay in the same home for the entire term of the loan. B. Option 1 will always be the better option. OC. Option 2 will always be the better option. OD. Option 2 is the better option, but only if the borrower can afford the higher monthly payments over the entire term of the loan.
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