Reference no: EM13952347
Show by hand: You purchase a new house for $150,000 with a 10% down payment. The bank offers you two loan options – both of them for 30 years. Option 1 is an annual interest rate of 6% compounded monthly. Option 2 is an annual interest rate of 5% compounded monthly, but requires you to pay 4 points to obtain this reduced interest rate. House payments are monthly for both option 1 or 2.
If you choose option 2, you will roll your point fees into the loan. That means, for example, if the amount of the loan were $180,000 and the points fees were $5,000, you would take out a loan for $185,000. So, to compute the monthly payment for option 2, you’ll want to compute the monthly payment for the combined value of the loan and points fees.
What is the approximate difference between the 2 monthly payment options, and which one is cheapest?
a) $17.43 and option 1 is cheapest
b) $22.42 and option 1 is cheapest
c) $28.05 and option 1 is cheapest
d) $46.89 and option 2 is cheapest
e) $52.47 and option 2 is cheapest
f) $55.70 and option 2 is cheapest
|
The love canal incident influence
: What does the Blake family's story indicate about the effectiveness of our hazardous waste regulations? What more should be done to prevent situations like Hickory Woods?
|
|
Concerning an investment strategy
: A young investor comes to talk with you concerning an investment strategy. The individual states that, “Young people with little wealth should not invest money in risky assets such as the stock market, because they can’t afford to lose what little mo..
|
|
The conference on evaluating capital projects
: The conference on evaluating capital projects has been very helpful. You have received a significant amount of information and multiple projects to evaluate to hone your skills. Should they be accepted? How does a change in the required rate of retur..
|
|
What was the underlying principle for the formulation of
: What was the underlying principle for the formulation of periodic table? What are the various properties showing the recurring trends in a periodic table? What is the trend for atomic radii variation in a period across left to right?
|
|
Approximate difference between two monthly payment options
: Show by hand: You purchase a new house for $150,000 with a 10% down payment. The bank offers you two loan options – both of them for 30 years. Option 1 is an annual interest rate of 6% compounded monthly. What is the approximate difference between t..
|
|
Describe different structures and areas within the brain.
: Discuss in detail the thalamus, hypothalamus, endocrine and limbic systems.
|
|
Risk-averse investors reject investments that are fair games
: Risk-averse investors reject investments that are fair games. Risk-neutral investors judge risky investments only by the expected returns. Risk-averse investors judge investments only by their riskiness. Risk-loving investors will not engage in fair ..
|
|
Where does the energy come from that powers these winds
: A starbust galaxy like M82 drives a strong galactic wind made up of matter leaving the galaxy. Which events inside the galaxy drive these winds? Where does the energy come from that powers these winds?
|
|
Consumer products company in a third-world country
: As you have learned in this first unit, pollution is a worldwide issue that must be combatted. Read the scenarios provided below, and choose one to write about for your essay.
|