PA Use to determine the regular payment amount, rounded to the nearest dollar. Consider the following pair of mortgage loan options for a $130,000 mortgage. Which mortgage loan has the larger total cost (closing costs + the amount paid for points + total cost of interest)? By how much? Mortgage A: 20-year fixed at 6.25% with closing costs of $2300 and 1 point. Mortgage B: 20-year fixed at 4.5% with closing costs of $2300 and 4 points. Choose the correct answer below, and fill in the answer box to complete your choice. (Do not round until the final answer. Then round to the nearest dollar as needed.) OA. Mortgage B has a larger total cost than mortgage A by $ OB. Mortgage A has a larger total cost than mortgage B by $.
PA Use to determine the regular payment amount, rounded to the nearest dollar. Consider the following pair of mortgage loan options for a $130,000 mortgage. Which mortgage loan has the larger total cost (closing costs + the amount paid for points + total cost of interest)? By how much? Mortgage A: 20-year fixed at 6.25% with closing costs of $2300 and 1 point. Mortgage B: 20-year fixed at 4.5% with closing costs of $2300 and 4 points. Choose the correct answer below, and fill in the answer box to complete your choice. (Do not round until the final answer. Then round to the nearest dollar as needed.) OA. Mortgage B has a larger total cost than mortgage A by $ OB. Mortgage A has a larger total cost than mortgage B by $.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Use
to determine the regular payment amount, rounded to the nearest dollar. Consider the following pair of mortgage loan options for a $130,000 mortgage. Which mortgage loan has the larger total cost (closing costs + the
amount paid for points + total cost of interest)? By how much?
Mortgage A: 20-year fixed at 6.25% with closing costs of $2300 and 1 point.
Mortgage B: 20-year fixed at 4.5% with closing costs of $2300 and 4 points.
Choose the correct answer below, and fill in the answer box to complete your choice.
(Do not round until the final answer. Then round to the nearest dollar as needed.)
OA. Mortgage B has a larger total cost than mortgage A by $.
OB. Mortgage A has a larger total cost than mortgage B by $.
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