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Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a ​$ loan. Option​ 1: a​ 30-year loan at an APR of ​%. Option​ 2: a​ 15-year loan at an APR of ​%. Find the monthly payment for each option. The monthly payment for option 1 is ​$ nothing. The monthly payment for option 2 is ​$ nothing

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Answer:

The numbers are missing, so I looked for similar questions to fill in the blanks:

You need a ​$300,000 loan. Option​ 1: a​ 30-year loan at an APR of 6​%. Option​ 2: a​ 15-year loan at an APR of ​4.5%.

We can use the present value of an annuity formula to calculate monthly payments.

present value = monthly payment x PV annuity factor

monthly payment = present value / PV annuity factor

present value = $300,000

option 1: PV annuity factor, 0.5%, 360 periods = 166.79161

option 2: PV annuity factor, 0.375%, 180 periods = 130.7201

monthly payment option 1 = $300,000 / 166.79161 = $1,798.65

monthly payment option 2 = $300,000 / 130.7201 = $2,294.98

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