6th Edition

ISBN: 9780135902783

Author: Pirnot

Publisher: PEARSON

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Textbook Question

Chapter 8.5, Problem 58E

Total cost of a mortgage. Repeat Exercise 57 for a 20-year, 4 % mortgage with options A and B.

A: Annual interest rate 4 % ; 4 points; closing costs $ 4 , 500 .

B: Annual interest rate 5 % ; 1 point; closing costs $ 1 , 500 .

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Chapter 8.5, Problem 57E

Chapter 8.5, Problem 59E

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Total cost of a mortgage. Repeat Exercise 57 for a 20-year, 4 % mortgage with options A and B. A: Annual interest rate 4 % ; 4 points; closing costs $ 4 , 500 . B: Annual interest rate 5 % ; 1 point; closing costs $ 1 , 500 .

Solution Summary: The author compares the cost of the two options: option A with an annual interest rate of 4% and option B.

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