Use

PMT=Prn/ [1(1+rn)^nt] to determine the regular payment amount, rounded to the nearest dollar. The price of a small cabin is

$30,000. The bank requires a 5% down payment. The buyer is offered two mortgage options: 20-year fixed at 9.5%

or 30-year fixed at 9.5%. Calculate the amount of interest paid for each option. How much does the buyer save in interest with the 20-year option? a. Find the monthly payment for the 20-year option.

b Find the monthly payment for the 30-year option.

c. Calculate the total cost of interest for both mortgage options. How much does the buyer save in interest with the 20-year option?