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Mathematics, 26.03.2020 04:32 lpssprinklezlps

20. Howard must decide if he will purchase discount points for his mortgage. Two discount points

which cost 2% of the mortgage amount will result in a 0.5% decrease in the interest rate. The

terms of the mortgage are shown below.

Howard's Mortgage

$423.000

30 year fixed

5% annual rate

O discount points

M = $2,270.76

4.5% annual rate

2 discount points

M = $2,143.28

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20. Howard must decide if he will purchase discount points for his mortgage. Two discount points

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