the bank of behn has agreed to load you 95,000 for a house you want to purchase. they will change you 3.848% APR per year if you get a 15 year loan and 4.808% per year for a 30 year loan. how much more will you need to pay per month if you go with the 16 year loan?
I have assumed that the APR rates are compounded monthly. Therefore:
The 15-year mortgage @ 3.848% will have a monthly payment=$695.49 principal + interest.
The 30-year mortgage @ 4.808% will have a monthly payment =$445.26 principal + interest.
So, $695.49 - $445.26 =$250.23 is the difference in the two monthly payments.
