Question: Mr. Smith is purchasing a $ 110000 house. The down payment is 20 % of the price of the house. He is given the choice

Mr. Smith is purchasing a $ 110000 house. The down payment is 20 % of the price of the house.

He is given the choice of two mortgages:

a) a 25-year mortgage at a rate of 6 %.

Find

(i) the monthly payment: ??? $

(ii) the total amount of interest paid: ????$

b) a 15-year mortgage at a rate of 6 %.

Find

(i) The monthly payment: ????$

(ii) the total amount of interest paid: ????$

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