Alternative 2 Results in the Lowest Overall Cost and Lowest

question 90

Essay

Alternative 2 results in the lowest overall cost and lowest interest cost.A 20 year mortgage biweekly costs $216.04/month more than a 25-year but saves $64,062 over 20 years.The cost per month of bimonthly payments is also slightly lower than monthly payments.This is a good exercise to demonstrate the advantage of shorter term mortgages.
-How long does it take $1,000 to double in value if you have a
A)3% return
B)6% return
C)10% return
Assume compounding monthly.

• A)3% return
• B)6% return
• C)10% return
• Assume compounding monthly.

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Definitions:

Pleuritis

Inflammation of the pleura, the double-layered membrane surrounding the lungs, often causing chest pain.

Cigarette Smoking

The act of inhaling and exhaling the smoke produced by burning tobacco in cigarettes, which poses health risks.

Laryngitis

Inflammation of the larynx, often causing a hoarse voice or loss of voice.

Lung Cancer

A type of cancer that begins in the lungs and is often caused by smoking or exposure to secondhand smoke, presenting challenges in early detection and treatment.