Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 15P
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Question
A person is looking at purchasing a house that is priced at $100,000. They plan on using a down payment of $25,000. The bank offers two different mortgages:
option A: 3% APR for 20 years
option B: 2% APR for 25 years
Explain which is the better option.
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