Real estate is an important decision for businesses to make. Does it make sense to lease some space or would it cost less to purchase some property? To purchase property, many businesses need to take out a mortgage.

You want to investigate whether it will make financial sense for your business to purchase some real estate.

You will finance 80% of the purchase price. Using 5% as the interest on your 30-year fixed rate mortgage, calculate the monthly payment.

Next, calculate the payment using the same 5%, but for a 15-year mortgage. Show all calculations.

Property price: $824,900