document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1050467>Question 1050467</A>: <I><SPAN STYLE=\"word-break: break-all;\"> You need $210,000 to buy a new home. The bank offers a choice of a 30 year loan at an APR of 8% or a 15 year loan at 7.5%. Assume the closing costs are the same for both loans.<BR>\n" );
document.write( "a) Compare the monthly payments for these two loans options.<BR>\n" );
document.write( "b) Compare the total loan costs for these two loan options.<BR>\n" );
document.write( "c) What are the pros and cons of each loan which option would you choose? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #666031 by </B><A HREF=/tutors/aboutme.mpl?userid=Fombitz><B>Fombitz(32388)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Fombitz><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Fombitz><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=666031\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Use the monthly payment formula,<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=M=P%28R%281%2BR%29%5EN%29%2F%28%281%2BR%29%5EN-1%29 ALIGN=MIDDLE  ALT=\"M=P%28R%281%2BR%29%5EN%29%2F%28%281%2BR%29%5EN-1%29\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "where <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P=210000 ALIGN=MIDDLE  ALT=\"P=210000\"   DISABLED_style= \"max-width:90%; height:auto;\" >,<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=N%5B1%5D=30%2A12=360 ALIGN=MIDDLE  ALT=\"N%5B1%5D=30%2A12=360\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=N%5B2%5D=15%2A12=180 ALIGN=MIDDLE  ALT=\"N%5B2%5D=15%2A12=180\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( " and <BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=R%5B1%5D=0.08%2F12=0.0067 ALIGN=MIDDLE  ALT=\"R%5B1%5D=0.08%2F12=0.0067\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=R%5B2%5D=0.075%2F12=0.00625 ALIGN=MIDDLE  ALT=\"R%5B2%5D=0.075%2F12=0.00625\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( ".<BR>\n" );
document.write( ".<BR>\n" );
document.write( ".<BR>\n" );
document.write( "Using the formula,<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=M%5B1%5D=1502.59 ALIGN=MIDDLE  ALT=\"M%5B1%5D=1502.59\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=M%5B2%5D=1946.73 ALIGN=MIDDLE  ALT=\"M%5B2%5D=1946.73\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( ".<BR>\n" );
document.write( ".<BR>\n" );
document.write( ".\r<BR>\n" );
document.write( "\n" );
document.write( "Total payments multiply the monthly payment by number of periods,<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=T%5B1%5D=1502.59%2A360=540930.90 ALIGN=MIDDLE  ALT=\"T%5B1%5D=1502.59%2A360=540930.90\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=T%5B2%5D=1946.73%2A180=350410.67 ALIGN=MIDDLE  ALT=\"T%5B2%5D=1946.73%2A180=350410.67\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( ".<BR>\n" );
document.write( ".<BR>\n" );
document.write( ".<BR>\n" );
document.write( "30 yr - Lower monthly payment but twice as many payments<BR>\n" );
document.write( "15 yr - Fewer payments but higher monthly payment<BR>\n" );
document.write( "  </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );