Choice Rate 12 7% 6.75% Points - 1 3 6.25% 3

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.5.1MBA: Margin of safety Using the data from P11-2, determine the following for 20Y5. Margin of safety for...
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Using the table Please show step by step how to solve a. and b. in excel

Suppose that there is $2,500 origination cost.

A house with price of $250,000

20% down payment, loan amount $200.000

30-year fixed rate mortgage with interest rate in the table

a. Which choice would Carlton like to choose if he will live in the house for 30 years?

b. Which choice would Carlton like to choose if he will live in the house for 5 years?

Choice Rate
12
7%
6.75%
Points
-
1
3
6.25%
3
Transcribed Image Text:Choice Rate 12 7% 6.75% Points - 1 3 6.25% 3
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