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# Compare the monthly payments and total loan costs

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Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs.You need a ​\$110,000 loan.Option​ 1: a​ 30-year loan at an APR of

8.5​%. Option​ 2: a​ 15-year loan at an APR of 8%.Find the monthly payment for each option.

The monthly payment for option 1 is ​\$.

The monthly payment for option 2 is ​\$

​(Do not round until the final answer. Then round to the nearest cent as​ needed.)

Guest Nov 1, 2017
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Use this amortization table to calculate your monthly payments and compare them to the payments you get by using the monthly payment formula in your book.

Option 1:  http://www.calculator.net/amortization-calculator.html?cloanamount=110000.00&cloanterm=30&cinterestrate=8.5&printit=0&x=51&y=21

Option 2:  http://www.calculator.net/amortization-calculator.html?cloanamount=110000.00&cloanterm=15&cinterestrate=8&printit=0&x=63&y=22

Guest Nov 1, 2017

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