Solve the Problem $8 \%$ Option 2: a 15-Year Loan at an APR Of

Multiple Choice

Solve the problem.
-Suppose that you need a loan of $120,000. Find the total cost of all the monthly payments for each of the loan options listed below. Assume that the loans are fixed rate. Round the total cost of each
Loan to the nearest dollar. Option 1: a 30-year loan at an APR of $8 \%$
Option 2: a 15-year loan at an APR of $7 \%$

A) Option 1: $\$ 309,981$
Option 2: $\$ 187,135$

B) Option 1: $\$ 316,987$
Option 2: $\$ 194,146$

C) Option 1: $\$ 245,608$
Option 2: $\$ 186,056$

D) Option 1: $\$ 321,909$

Option 2: $\$ 198,185$