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12345 [234]
4 years ago
11

Todd foley is applying for a 100,000 mortgage. he can get a 600 monthly payment for principal and interest and no points, or a 5

20 monthly payment with 2 points. how many months will it take todd to cover the cost of the discount points if he takes the lower monthly payment
A 6
B 10
c 18
D 25
Mathematics
1 answer:
Aleks [24]4 years ago
3 0

Answer:

D. 25

Step-by-step explanation:

The 2 points cost Foley 2% × $100,000 = $2000. He saves $600 -520 = $80 per month, so it will take him

... $2000/($80/mo) = 25 mo

to save the cost of the points.

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