Mathematics, 15.08.2020 03:01 sydneip6174

Use p(r/n) / [1-(1+(r/n)^nt] to determine the regular payment amount, rounded to the nearest dollar. Consider the following pair of mortgage loan options for a $ mortgage. Which mortgage loan has the larger total cost (closing costs + the amount paid for points + total cost of interest)? By how much? Mortgage A: 30-year fixed at 12.25% with closing costs of $2300 and 1 point. Mortgage B: 30-year fixed at 11.25% with closing costs of $2300 and 2 points.

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Use p(r/n) / [1-(1+(r/n)^nt] to determine the regular payment amount, rounded to the nearest dollar....