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Mr. Smith is purchasing a $ 120000 house. The down payment is 20 % of the...

Mr. Smith is purchasing a $ 120000 house. The down payment is 20 % of the price of the house.
He is given the choice of two mortgages:

a) a 25-year mortgage at a rate of 7 %.
Find
(i) the monthly payment: $
(ii) the total amount of interest paid: $


b) a 15-year mortgage at a rate of 7 %.
Find
(i) The monthly payment: $
(ii) the total amount of interest paid: $

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