Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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The figure below shows costs for a current home mortgage versus a refinanced home mortgage. Refinancing has initial costs, but results in a lower monthly payment. Which best describes the lines?

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The blue line is for refinancing, which starts cheaper but eventually is costlier

The blue line is for refinancing, which starts costlier but eventually is cheaper

The orange line is for refinancing, which starts cheaper but eventually is costlier

The orange line is for refinancing, which starts costlier but eventually is cheaper

14000
12000
A 10000
8000
6000
4000
2000
+
+
2
10
Months
Total cost ($)
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Transcribed Image Text:14000 12000 A 10000 8000 6000 4000 2000 + + 2 10 Months Total cost ($)
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