Question: Mr. Smith is purchasing a $ 90000 house. The down payment is 20% of the price of the house. He is given the choice of

Mr. Smith is purchasing a $ 90000 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 with an annual interest rate of 10 %, with interest compounded monthly.

Find (i) the monthly payment: $

(ii) the total amount of interest paid: $

b) a 15-year mortgage with an annual interest rate of 10 %, with interest compounded monthly.

Find (i) The monthly payment: $

(ii) the total amount of interest paid: $

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