Options results in lower total interest costs

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Which of these options results in lower total interest costs - A 30-year student loan of $120,000 with an annual interest rate of 3% or a 20-year loan of $120,000 with an upfront cost of $5,000 but an annual interest rate of 3.750%?

Reference no: EM13251839

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Options results in lower total interest costs : Which of these options results in lower total interest costs - A 30-year student loan of $120,000 with an annual interest rate of 3% or a 20-year loan of $120,000 with an upfront cost of $5,000 but an annual interest rate of 3.750%?
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