The price of a home is $160,000. The bank requires a 15% down payment. The buyer is offered two mortgage options: 15-year fixed at 7%

or 30-year fixed at 7%.

Calculate the amount of interest paid for each option. How much does the buyer save in interest with the 15-year option?

Find the monthly payment for the 15-year option.

(Round to the nearest dollar as needed.)

Find the monthly payment for the 30-year option.

(Round to the nearest dollar as needed.)

Calculate the total cost of interest for both mortgage options. How much does the buyer save in interest with the 15-year option?