To find the total amount paid for the 15-year mortgage, we will multiply the payments by the number of payments. They would have to pay 12 payments per year for 15 years.
[tex]786.55(12)(15)=141579[/tex]We will do the same for the 30-year mortgage
[tex]543.77(12)(30)=195757.2[/tex]If we subtract the two amounts, we will get
[tex]195757.2-141579=54178.2[/tex]Therefore, they would be able to save $ 54 178.20 if they chose the 15-year mortgage.
