Question

If closing costs of $1,400 are associated with the refinance of reduce the monthly payment fro m $980 to $870 refinance, it would take approximately a mortgage that would months to cover these costs. A. 6 B. 9C.)13 D) 17 E). 22

Answer 1

Answer:

time take = 13 months

so correct option is C.)13

Explanation:

given data

closing costs = $1,400

monthly payment reduce = $980 to $870

to find out

Time to cover cost

solution

we know here monthly payments after reduction will be

monthly payments = $980 - $870

monthly payments = $110

so

time taken is = $\frac{closing\ costs}{monthly\ payments}$  .........1

time taken is = $\frac{1400}{110}$

time take is = 12.727273

time take = 13 months

so correct option is C.)13