Use PMT=Prn11+rnnt to determine the regular paymentamount, rounded to the nearest dollar. The price of a small cabin is $35,000. The bank requires a5% down payment. The buyer is offered two mortgageoptions: 20-year fixed at 6.5% or30-year fixed at 6.5%. Calculate the amount of interest paid for each option. How much does the buyer save in interest with the20-year option?

Find the monthly payment for the20-year option.