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The question in the image involves calculating the regular mortgage payment amount using the provided formula for the **PMT (payment) calculation**. It compares two options for a $190,000 mortgage:

1. **30-year mortgage** at a **7.5% fixed rate**.
2. **20-year mortgage** at a **7.0% fixed rate**.

The PMT formula is as follows:

\[
\text{PMT} = \frac{P \cdot \frac{r}{n}}{1 - \left(1 + \frac{r}{n}\right)^{-nt}}
\]

Where:
- $P$ is the loan amount ($190,000).
- $r$ is the annual interest rate (7.5% or 7.0%).
- $n$ is the number of payments per year (12 for monthly payments).
- $t$ is the total number of years of the loan (30 years or 20 years).

Let me calculate the monthly payment for both cases to determine which option saves more on interest.Here are the results for the mortgage payment comparison:

1. **30-year mortgage at 7.5%**:
   - Monthly payment: \$1,328.51
   - Total interest paid: \$288,263

2. **20-year mortgage at 7.0%**:
   - Monthly payment: \$1,473.07
   - Total interest paid: \$163,536

**Savings in interest** if choosing the 20-year loan:  
- The buyer will save approximately **\$124,726** in interest by choosing the 20-year mortgage over the 30-year mortgage.

Would you like further details or have any questions?

### Related Questions:
1. How does the interest savings change if the rates differ slightly?
2. What would the monthly payment be if the loan amount changes to \$250,000?
3. How does increasing the down payment affect the overall interest paid?
4. What happens if the loan term for the 30-year mortgage is reduced to 25 years?
5. How does paying extra monthly affect the total interest saved?

### Tip:
Paying a little extra on your mortgage each month can significantly reduce the interest paid over the life of the loan!

In terms of paying less in interest, which is more economical for a $190,000 mortgage: a 30-year fixed-rate at 7.5% or a 20-year fixed-rate at 7%? How much is saved in interest?

Learn how to calculate and compare mortgage payments for a $190,000 loan with two options: a 30-year fixed-rate at 7.5% or a 20-year fixed-rate at 7%. Discover how much can be saved in interest and which option is more economical.

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