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Part 1
In terms of paying less in​ interest, which is more economical for a ​$90 comma 000 ​mortgage: a​ 30-year fixed-rate at 8.5​% or a​ 15-year fixed-rate at 8​%? How much is saved in​ interest? Use the following formula to determine the regular payment amount.
PMT equals StartStartFraction Upper P left parenthesis StartFraction r Over n EndFraction right parenthesis OverOver left bracket 1 minus left parenthesis 1 plus StartFraction r Over n EndFraction right parenthesis Superscript negative nt right bracket EndEndFraction
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Part 1
Select the correct choice below and fill in the answer box within your choice.
​(Do not round until the final answer. Then round to the nearest thousand​ dollars.)
A.
The​ 30-year 8.5​% loan is more economical. The buyer will save approximately ​$

enter your response here in interest.
B.
The​ 15-year 8​% loan is more economical. The buyer will save approximately ​$

enter your response here in interest.

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