Answer:
- Monthly Payment for Choice 1=$665.16
- Monthly Payment for Choice 2=$627.10
- Total Closing Cost for Choice 1=$241557.60
- Total Closing Cost for Choice 2=$233456
- (A)Choice 1 be the better choice the monthly payment is higher.
- (D)Choice 2 be the better choice because the monthly payment is lower.
Explanation:
Amount of Loan needed = $140,000
- A point is an optional fee which helps you get a lower interest rate on your loan.
- Closing costs are the fees you pay when obtaining your loan.
<u>Choice 1</u>
30-year fixed rate at 4% with closing costs of $2100 and no points.
Monthly Payment
P=$140,000
Monthly Rate=4% ÷ 12=0.04 ÷ 12=0.0033
n=12 X 30 =360
Monthly Payment=$665.16
Total Closing Cost =(665.16 X 360)+2100=$241557.60
<u>Choice 2</u>
30-year fixed rate at 3.5% with closing costs of $2100 and 4 points.
Monthly Payment
P=$140,000
Monthly Rate=3.5% ÷ 12=0.035 ÷ 12=0.0029
n=12 X 30 =360
Monthly Payment=$627.10
Total Closing Cost =(627.10 X 360)+2100+(4% of 140000)=$233456
It can impact your ability to be approved for bank loans.
Answer:
unsought
Explanation:
Based on the scenario being described within the question it can be said that this is an example of an unsought product. This term refers to a product in which an individual does not care much about or is even interested in purchasing. Which in this situation Megan has not given much thought into life insurance and is not looking to purchase it, but is aware of it due to the insurance agent's call.
The net present value of the proposed investment is closest to $5,146.
Net present value = Present value of cash-flows - Initial investment
<u>Given Information</u>
PV of cashflows at 18%
Cash flows PV at 18% P.V. of cash-flows
$12,000 (Cost saving) 3.127 $37,524
$6,000 (Salvage) 0.437 <u>$2,622</u>
Total <u>$40,146</u>
Net present value = $40,146 - $35,000
Net present value = $5,146
Therefore, the net present value of the proposed investment is closest to $5,146.
Learn more about Net present value
<em>brainly.com/question/25748668</em>
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