please show me the calculations Would you take an offer of a...
70.2K
Verified Solution
Link Copied!
Question
Finance
please show me the calculations
Would you take an offer of a 1 discount point to reduce the interest from 9% to 8.5% per year on a $200,000 mortgage loan that matures in 25 years, if you were planning on staying on the house for only 3.5 years before selling it? I would pay the discount point since the PV of savings over 3.5 years is 5 2,461.05 > $2,000 I would not pay the discount point since the PV of savings over 3.5 years is $ 2,461.05 $2,000 I would not pay the discount points since the PV of savings over 3.5 years is 5 2 440.33
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
