Maria is debating between two different mortgages for $155,000. She found a 20-year fixed rate loan at 7.35% and 15-year fixed rate loan at the same rate. How much more interest will she pay for the 20-year loan versus the 15-year loan?

Question

ganeshie8 · Answer

do you have EMI/monethly payment formula ?

anonymous · Answer

No, ive looked up three different formula's and none of them with the right answer. Im honestly lost at this point.

ganeshie8 · Answer

its okay, use below formula : 
$$\Large\text{monthly payment} = \dfrac{P*i(1+i)^n}{(1+i)^n-1}$$

where $P$ = loan amount = $155,000$

$i$ = monthly interest rate = $\dfrac{0.0735}{12}$

$n$ = number of months = $20*12$ or $15*12$

ganeshie8 · Answer

find the monthly payment for each type of loan