A family wants to purchase a house that costs $125 comma 000. They plan to take out a $115 comma 000 mortgage on the house and put $10 comma 000 as a down payment. The bank informs them that with a 15-year mortgage their monthly payment would be $716.03 and with a 30-year mortgage their monthly payment would be $553.08. Determine the amount they would save on the cost of the house if they selected the 15-year mortgage rather than the 30-year mortgage.

The master manufacturing company has just announced a tender offer for its own common stock. master is offering to buy up to 100% of the company's stock at $20 per share contingent on at least 64% of the outstanding shares being tendered. after the announcement of the offer, the stock closed on the nyse up 2.50 at $18.75. a customer has 100 shares of master stock in his cash account. the customer tells you that he wishes to "cash out" his position. you should recommend that the customer: