Lian is considering two loan options for buying a home in El Paso. Both are simple interest loans. 15-Year Loan
• Loan Amount: $155.000
• Interest Rate: 3.5%
• Time: 15 years
30-Year Loan
• Loan Amount: $155,000
• Interest Rate: 4.5%
• Time: 30 years
Which describes the relationship between the amounts of interest that Lian would pay over the course of the two loans?
O She would pay $81,375 more interest with the 30-year loan than with the 15-year loan.
O She would pay $127,875 more interest with the 30-year loan than with the 15-year loan.
O She would pay $81,375 more interest with the 15-year loan than with the 30-year loan.
O She would pay $127,875 more interest with the 15-year loan than with the 30-year loan.