"Bob can get: (1) a fully amortizing 30 year fixed rate mortgage with monthly payments for $500,000 at an annual interest rate of 9%, compounded monthly. (2) a fully amortizing 15 year fixed rate mortgage with monthly payments for $500,000 at an annual interest rate of r, compounded monthly. What does the interest rate on the 15 year fixed rate mortgage need to be so that Bob s payment on the 15 year fixed rate mortgage is the same as the 30 year fixed rate mortgage? (make sure your answer is annualized)"

		0.44%
		0.75%
		5.26%
		7.23%