Answer:
A. 15-year mortgage =$141,478.20
30-year mortgage =$187,707.60
B. $46,229.40
Step-by-step explanation:
A. Calculation to Determine the amount they would save on the cost of the house if they selected the 15-year mortgage rather than the 30-year mortgage.
Calculation for 15-year mortgage
Cost amount to save for 15-year mortgage=$785.99*15-year*12 months
Cost amount to save for 15-year mortgage =$141,478.20
Calculation for 30-year mortgage
Cost amount to save for 30-year mortgage =$521.41*30-year*12 months
Cost amount to save for 30-year mortgage =$187,707.60
B. Calculation for How much would they save if they selected the 15-year mortgage
Using this formula
Amount to save=30-year mortgage -15-year mortgage
Let plug in the formula
Amount to save=$187,707.60-$141,478.20
Amount to save=$46,229.40
Therefore How much would they save if they selected the 15-year mortgage will be $46,229.40
