Problem:
You plan to take out a $300,000 conventional fixed rate mortgage. You will either take out a 15 year mortgage or a 30 year mortgage. The interest rate on the 15 year mortgage is 3.5%. The interest on the 30 year mortgage is 4.5%.
Required:
Question 1: What will be the monthly mortgage payment for the 15 year mortgage?
Question 2: What will be the monthly mortgage payment for the 30 year mortgage?
A. $3,042.80 and $4,294.02
B. $3,059.68 and $4,341.25
C. $1,539.49 and $2,170.63
D. $1,520.06 and $2,144.65
Elucidate in detail and specify all computation and methods.