On a piece of paper or on a device with a touch screen, hand write the solution to the following problem:

You would like to buy a house for $1,100,000. You put $200,000 down, and then get a mortgage for the rest at 4%, compounded monthly. (Note: Do not use an approximation, use 0.04/12)

1. What is the difference in the monthly payment if you amortize the loan over 30 years vs. 15 years?
2. What is the difference in the total amount of payments if you amortize the loan over 30 years vs. 15 years?
3. Which do you think is a better choice?