For questions 10-15: Imagine that you are purchasing a house for $110,000. The lender requires a minimum down payment of 5% of the purchase price. The closing costs are $2,050. The loan term is 30 years. The interest rate is 6%. Real estate taxes on the house are $1,200 per year. Homeowners insurance is $750 per year. You also have to pay for private mortgage insurance. For this example, it would likely cost 1% of the loan amount for at least the first 5 years of the loan or $87.08 per month.

1. If the term of the loan were 20 years instead of 30 with an interest rate of 5.5%, what is the monthly payment and the total interest paid?

Group of answer choices

$748.67 and $179,680.80

$593.34 and $109,102.40

$718.84 and $68,021.60

$756.68 and $77,103.20