Problem: You are interested in a fixed-rate mortgage for $399,500 and need to choose the between options: a 15-year mortgage or a 30-year mortgage. The current mortgage rate is 4.1% for the 15-year mortgage, and 3.75% for the 30-year mortgage. Both require a 15% down payment. (Hint: make use of the amortization formula from Chapter 12).

(a) What are the monthly principal and interest payments for EACH loan? Show your work.

(b) What is the total amount of interest paid on EACH loan? Show your work.

(c) Overall, how much more interest is paid by choosing the 30-year mortgage? Show your work.