A family wants to purchase a house that costs $145,000. They plan to take out a $115,000 mortgage on the house and put $30,000 as a down payment. The bank informs them that with a 15-year mortgage their monthly payment would be $785.99 and with a 30-year mortgage their monthly payment would be $521.41. 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?

A. Calculation to 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.

Calculation for 15-year mortgage

Cost amount to save for 15-year mortgage=$785.99*15-year*12 months

Cost amount to save for 15-year mortgage =$141,478.20

Calculation for 30-year mortgage

Cost amount to save for 30-year mortgage =$521.41*30-year*12 months

Cost amount to save for 30-year mortgage =$187,707.60

B. Calculation for How much would they save if they selected the 15-year mortgage

Using this formula

Amount to save=30-year mortgage -15-year mortgage

Let plug in the formula

Amount to save=$187,707.60-$141,478.20

Amount to save=$46,229.40

Therefore How much would they save if they selected the 15-year mortgage will be $46,229.40