The Yang family plans to buy a new house soon and is considering mortgage options. They are considering two options, a 15-year mortgage with an APR of 2.75% or a 30-year mortgage with an APR of 3.14%. Both options compound interest monthly. Currently the Yang family spends (e) $__1835___ each month in rent and plan to spend the same amount on a mortgage payment. They do not currently have a down payment and will finance the full price of the home. Round answers to whole numbers.

If the Yang family chooses the 15-year mortgage, how much will they be able to borrow? (3 pt)

If the Yang family chooses the 30-year mortgage, how much will they be able to borrow? (3 pt)

Which option will allow the Yang family to borrow the most? By how much? Respond in a complete sentence. (3 pt)

Under which option will the Yang family spend the most overall? By how much? Respond in a complete sentence. (4 pt)

Part 5: Reflection

In parts 1 through 4 of this project, two different financial options are presented. For each part, choose which option is better and explain why. Complete sentences should be used in each answer and the explanation should include at least one result from your previous calculations. (4 x 3 pt = 12 pt)

Part 1: Saving for Retirement

Part 2: Buying a Car

Part 3: Student Loans

Part 4: Mortgages