You plan to buy a $240000 home with a 10% down payment. The bank you want to finance the purchase suggests two options (use semiannual compounding):

Option 1:20-year mortgage at 8.12% nominal annual interest rate.

Option 2:30-year mortgage at 10.45% nominal annual interest rate.

What is the equivalent monthly interest rate for each option?

Equivalent monthly interest rate Option 1:

Equivalent monthly interest rate Option 2:

What is the monthly payment of each option?

Monthly payment Option 1:

Monthly payment Option 2: