Total Payment Interest paid

Scenario #1 $440,798 $140,798

Scenario #2 $420,000 $120,000

Which of the scenarios is the best option? And are the below calculations correct?

previous information-

Scenario 1- Pay all of the interest (8% per year) and principal in one lump sum at the end of 5 years

FV = PV (1 + r)n

Amount $ 300,000

Period (years) 5

Interest rate 8%

Answer: $440,798.42 Total Payment

$140,798.42 Interest Paid

Scenario 2 - Pay interest at the rate of 8% per year for 4 years and then a final payment of interest and principal at the end of the 5th year;

Amount $300,000

Period (years) 5

Interest rate 8%

Answer :

Annual Interest Payment- $ 24,000.00

Year 5 Payment - $ 324,000.00

Total Payment- $ 420,000.00

Interest Paid- $ 120,000.00