You are applying for a mortgage for $150,000 to buy a house. You shop around and find these two possible mortgage options:
A 20 year mortgage loan with an APR of 6% A 30 year mortgage loan with an APR of 5% What are your monthly payments with each loan?
How much will you pay over the life of each loan? How much of that is interest?
Which option would you choose? Explain your reasoning, taking into account your answers to both (1) and (2).
Answer all parts of the problem. Show your justification for every step in your solution. Use clear, mathematically accurate language.
Label all numbers with the units they represent (e.g., 0.3048 ft/meter).
Clearly state your conclusions using complete English sentences (for example, "Jill needs to add 43 gallons of water to her pool").