You are considering the purchase of a home that would require a mortgage of $150,000. The bank offers you two financing options:

1) a 30-year mortgage at 5.65% interest rate

2) a 15-year mortgage at 4.9% interest rate

a. Calculate the monthly payments for each financing options. Show your work.

b. Suppose you select the 30-year mortgage. How much more in total interest will you pay compared to the 15-year mortgage? (Hint: total interest is the total amounts you have to pay in mortgage payments subtracting your original loan). Show your work.