In terms of paying less in interest, which is more economical for a $ 90,000 mortgage: a 30 -year fixed-rate at 8.5% or a 15 -year fixed-rate at 8% ? How much is saved in interest? Use the following formula to determine the regular payment amount.
PMT=P({r}/{n}}{1-(1+{r}/{n})⁻ⁿ⁺})
Select the correct choice below and fill in the answer box within your choice.
(Do not round until the final answer. Then round to the nearest thousand dollars.)
A. The 30-year 8.5% loan is more economical. The buyer will save approximately $___ in interest.
B. The 15 -year 8% loan is more economical. The buyer will save approximately $___ in interest.
