Use $\frac{P(\frac{r}{n})}{[1-(1+\frac{r}{n}{)}^{-nt}]}$

to determine the regular

payment amount, rounded to the nearest dollar.

Consider the following pair of mortgage loan options for

a $$170,000$ mortgage. Which mortgage loan has the

larger total cost $($closing costs $+$ the amount paid for

points $+$ total cost of interest$)?$ By how much?

Mortgage A: $30-$year fixed at $12\mathrm{.}25\%$ with closing

costs of $$1700$ and $1$ point.

Mortgage B: $30-$year fixed at $11\mathrm{.}25\%$ with closing

Choose the correct answer below, and fill in the answer

box to complete your choice.

$($Do not round until the final answer. Then round to the

nearest dollar as needed.$)$

Mortgage A has a larger total cost than

A$.$ mortgage $B$ by $$.$

Mortgage $B$ has a larger total cost than