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 costs of

$$1700$ and $5$ points.

viluuse ule cuileut alisvvei neiuvv, aliu ili i$"$ ule alisvei nux iu

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 mortgage $B$ by

A$.$ $

Mortgage $B$ has a larger total cost than mortgage $A$ by

B$.$ $$4520$