Question: Mr. Smith is purchasing a $ 200000 house. The down payment is 20 % of the price of the house. He is given the choice

Mr. Smith is purchasing a $ 200000 house. The down payment is 20 % of the price of the house. He is given the choice of two mortgages:

a) a 30-year mortgage at a rate of 10 %.

Find

(i) the monthly payment: $____________?

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

b) a 15-year mortgage at a rate of 10 %.

Find

(i) The monthly payment: $ ____________?

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

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