Problem #15 You have bought a $200,000 condominium with a down payment of 25%. You have the choice between two fixed-rate mortgages: Mortgage Maturity Interest Rate A 15- year 7.20% B 30-year 7.80% For each mortgage: o What is the monthly payment? o What is the split between the interest payments and the principal repayments throughout the life of the mortgage? Which mortgage would you choose?

Mortgage A maturity 15year Interest rate 7.20%

Mortgage B maturity 30 year Interest 7.80%