A family wants to purchase a house that costs $190,000. They plan to take out a $140,000 mortgage on the house and put

Question

A family wants to purchase a house that costs $190,000. They plan to take out a $140,000 mortgage on the house and put $50,000 as a down payment. The bank informs them that with a 15-year mortgage their monthly payment would be $723.49 and with a 30-year mortgage their monthly payment would be $520.82. Determine the amount they would save on the cost of the house if they selected the 15-year mortgage rather than the 30-year mortgage. How much would they save if they selected the 15-year mortgage?

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