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dem82 [27]
3 years ago
14

Leah is financing $340,000 to purchase a house. How much money will she save over the life of a 30-year, fixed-rate loan by buyi

ng 3 points with a rate of 6.475% instead of not buying points with a rate of 6.85%?
Mathematics
2 answers:
Juliette [100K]3 years ago
7 0

Answer:

pretty sure it is  $20198.40

Step-by-step explanation:

Stells [14]3 years ago
6 0

Answer:

$38250

Step-by-step explanation:

Given data

P= $340,000

t= 30-year,

r1= 6.475%

r2= 6.85%

For r1

A= P(1+rt)

A= 340,000(1+0.06475*30)

A= 340,000(1+1.9425)

A= 340,000*2.9425

A= $1000450

For r2

A= P(1+rt)

A= 340,000(1+0.0685*30)

A= 340,000(1+2.055)

A= 340,000*3.055

A= $1038700

The difference is '

= 1038700-1000450

=$38250

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Step-by-step explanation:

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