A Homeowner Could Take Out a 15-Year Mortgage at a 5.5

A homeowner could take out a 15-year mortgage at a 5.5 percent annual rate on a $195,000 mortgage amount,or she could finance the purchase with a 30-year mortgage at a 6.1 percent annual rate. How much total interest over the entire mortgage period could she save by financing her home with the 15-year mortgage (to the nearest dollar) ?

A) $230,408
B) $190,105
C) $155,612
D) $144,325
E) $138,612

Correct Answer:

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