Mortgage Bankers Association reported the median price of a home sold in the United States in January 2015 was $199,600. Pat Radigan wants to purchase a new home for $306,000. Pat puts 20% down and will finance the remainder of the purchase. Compare the following two mortgage options he has: 12 years at 5.0% or 17 years at 5.5%. (Use Table 15.1). (Round your intermediate calculations and final answers to the nearest cent.)

a. Calculate Pats monthly payment for both the 12 and 17 year mortgage?

Monthly payment for 12 year mortgage	$
Monthly payment for 17 year mortgage	$

b. Calculate Pats total cost of interest for both the 12 and 17 year mortgage?

Total cost of interest for 12 year mortgage	$
Total cost of interest for 17 year mortgage	$

c. What is the difference in interest paid between 12 and 17 year mortgage?

Difference $

TABLE 15.1 Amortization table (mortgage principal and interest per $1,000) INTEREST Term 31% 9.89 10.6 10.86 11.11 1136 11.62 88 12.14 240 2.67 12.94 13.22 13.50 13.78 8.52 9.25 9.51 9.76 10.02 10.29 10.56 10.83 I.11 11.39 11.67 11.96 12.25 12.54 .15 7.91 8.1 6.52 7.29 7.56 7.84 8.12 8.40 8.69 8.99 9.29 9.59 9.90 10.22 10.54 10.86 5.80 6.606.88 7.7 7.46 7.76 8.06 8.37 8.68 9.00 9.339.669.99 0.33 5.44 6.20 6.51 6.82 7.13 7.44 7.75 8.07 8.39 8.72 9.05 9.39 9.73 10.08 5.01 5.85 6.15 6.45 6.76 7.07 7.39 7.72 8.06 8.40 8.74 9.09 9.45 9.81 4.50 5.37 5.68 6.0 633 6.66 7.00 7.34 7.69 3.99 5.05 5.38 5.71 6.05 6.39 6.757.117477.848.228.608.999.37 51% 61% 71% 81% 9% in years 10 12 15 17 20 5% 6% 7% 8% 996 10% 10% 11% 8.44 8.72 8.999.28 9.569.85 10.15 10.451 0.75 11.06 11.3 25 30 35 05 84 8 8.78 9.15 9.53