You Need a Loan of $100,000 to Buy a Condo $1 : 30$

question 74

Multiple Choice

You need a loan of $100,000 to buy a condo. Calculate your monthly payments and total closing costs for each choice.
-Choice $1 : 30$ -year fixed rate at $4.5 \%$ with closing costs of $\$ 1308$ and no points Choice 2: 20-year fixed rate at $4 \%$ with closing costs of $\$ 1308$ and 4 points

• A) Choice 1: \(\$ 510.04 ; \$ 1308\)
• Choice 2: \$609.07; \$5058
• B) Choice 1: \(\$ 506.69 ; \$ 1308\)
• Choice 2: \$605.98; \$5308
• C) Choice 1: \(\$ 496.67 ; \$ 1308\)
• Choice 2: \$595.94; \$5108
• D) Choice 1: \(\$ 516.61 ; \$ 1308\)
• Choice 2: \$615.99; \$2616

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Definitions:

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Return On Investment

A metric used to evaluate the efficiency of an investment, calculated as the profit from an investment relative to its cost.

Invested Assets

Resources put into a business by its owners or shareholders with the expectation of generating future income or profit.

Net Income

The amount of earnings remaining after all expenses, taxes, and costs have been subtracted from total revenue.