The bank offers Mark a fixed rate loan with no points and a fixed rate loan with points. The difference in monthly payments between the loan with points and the loan without points is $19.18. The cost of the points is $1,200. What number is closest to the break-even point rounded to the nearest month? (2 points)

5 months

12 months

42 months

63 months

85.560%

step-by-step explanation:

conditional probability is defined as:

p(a|b) = p(a∩b) / p(b)

in other words, the probability that a occurs, given that b has occurred = the probability that both a and b occur / the probability that b occurs.

in this example:

p(turns 64 | turns 44) = p(turns 64 & turns 44) / p(turns 44).

if someone turns 64, they must have already turned 44, so:

p(turns 64 | turns 44) = p(turns 64) / p(turns 44)

on page 42, we see that of the original 100,000, 94944 turn 44, and 81234 turn 64.   therefore:

p(turns 64 | turns 44) = 81234 / 94944

p(turns 64 | turns 44) = 0.85560

the answer is 1 becuz if it were 1.0 that would rip apart the entire so ya. : )

~potato.

copyright potato 2019.

- (2, -7)

- lines r and s and lines t and u must be parallel