Mr Fisher Has Built Several Houses and Is Offering Buyers

question 12

Multiple Choice

Mr. Fisher has built several houses and is offering buyers mortgage rates of 10% with 15 year term. Current rates are 10.75%. Fourth National Bank will provide the loans, if Mr. Fisher pays an equivalent amount up front to buy down the interest rate. If a house is sold for $290,000 with a 90% loan, how much would Mr. Fisher have to pay to buy down the loan?

• A) $1,957.50
• B) $11,989.34
• C) $11,250.25
• D) $10,790.41

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Definitions:

Brainstorming

A creative group problem-solving and idea-generating technique aiming to find a conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its members.

Groupthink

A psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Strong-minded Leader

A leader who possesses unwavering determination, confidence, and the ability to stick to their principles and decisions, even under pressure.

Cohesive Groups

Teams or collectives characterized by strong bonds among members, leading to a high level of loyalty, unity, and commitment towards the group's objectives.