P(r/n)
1 - ( 1 + r/n ) ^-nt
Use the formula above to determine the regular paymen...
Mathematics, 26.03.2020 05:57, gamboaserg
P(r/n)
1 - ( 1 + r/n ) ^-nt
Use the formula above to determine the regular payment amount, rounded to the nearest dollar. Consider the following pair of mortgage loan options for a $120,000 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: 15-year fixed at 12.25% with closing costs of $1100 and 1 point.
Mortgage B: 15-year fixed at 11.25% with closing costs of $1100 and 3 points.
Choose the correct answer below, and fill in the answer box to complete your choice.
A. Mortgage B has a larger total cost than mortgage A by $___
or
B. Mortgage A has a larger total cost than mortgage B by $__
Answers: 1
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