Use $P(\frac{r}{n})$

pair of mortgage loan options for a $$150,000$ mortgage. Which mortgage loan has the larger total cost $($closing costs $+$ the amount paid for points $+$ total cost of interest$)?$ By how much?

Mortgage A: $30-$year fixed at $7\mathrm{.}25\%$ with closing costs of $$2900$ and $1$ point.

Mortgage B: $30-$year fixed at $5\mathrm{.}25\%$ with closing costs of $$2900$ and $3$ points.

Choose the correct answer below, and fill in the answer box to complete your choice.

$($Do not round until the final answer. Then round to the nearest dollar as needed.$)$

A$.$ Mortgage $B$ has a larger total cost than mortgage $A$ by $

B$.$ Mortgage A has a larger total cost than mortgage B by $