You Are Considering Two Payment Options on a $500,000 20-Year

Multiple Choice

You are considering two payment options on a $500,000 20-year mortgage having an interest rate of 2.8% compounded monthly. The first option is to make monthly payments at the start of each month, while the second option is to make payments at the end of each month. How much interest will be saved by choosing the first option?

A) $1,521.60
B) $1,721.60
C) $1,921.60
D) $2,121.60
E) $2,321.60