Gina needs a $500,000 mortgage and is offered two choices. The monthly payments for the fixed rate and predicted payments for the ARM are shown.
Fixed Rate Mortgage
Year Monthly Payment
1-20 $2,684.10
Adjustable Rate Mortgage
Year Monthly Payment
1-5 $2,533.43
16-20 $2,880.90
What is the difference between the total costs of the mortgages rounded to the nearest hundred? (4 points)
b
$26,400
54,200
514,600
58,300
Od