You are currently paying off a student loan with an interest rate of 9% and a monthly payment of $450. you are offered the chance to refinance the remaining balance with a new 10-year loan with an interest rate of 8% that will give you a significantly lower monthly payment. refinancing in this way
a) may or may not be a good idea, depending on closing costs and how many years are remaining in your current loan term.
b) is always a good idea.
c) is a good idea if it lowers your monthly payment by at least $100.
d) should never be done

A) may or may not be a good idea, depending on closing costs and how many years are remaining in your current loan term.

Explanation:

You have to evaluate if you are really going to save money if your refinance your loan. The interest rate may be lower, but what about other costs? What are the closing costs associated with this refinancing? What will be the amount of your new monthly payment, is it worth it? How long do you still have to pay your old loan?

For example, if you still have to pay your old loan 9 more years, and you save money by refinancing, it may be a good idea to go ahead and do it. But if you only have one more year of payments due, and you are not saving a lot of money, probably it's not worth it.

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.