Jina is taking out a mortgage for $165,000 to buy a new house and is deciding between the offers from two lenders.
She wants to know which one would be the better deal over the life of the mortgage
loan, and by how much.
Answer each part. Do not round intermediate computations, and round your answers to the nearest cent.
If necessary, refer to the list of financial formulas.
(a) A savings and loan association has offered her a 30-year mortgage loan at an annual
interest rate of 4.5%. Find the monthly payment
.
X
$0
(b) An online lending company has offered her a 15-year mortgage loan at an annual
interest rate of 4.3
%. Find the monthly payment.
$
(c) Suppose Jina pays the monthly payment each month for the full term. Which lender's
mortgage loan
would have the lowest total amount to pay off, and by how much?
O Savings and loan association
The total amount paid would be S less than to the online lending company.
Online lending company
The total amount paid would be s
less than to the savings and loan association.