If Closing Costs of $1,400 Are Associated with the Refinance

question 95

Multiple Choice

If closing costs of $1,400 are associated with the refinance of a mortgage that would reduce the monthly payment from $980 to $870,it would take approximately ____ months to cover these costs.

• A)6
• B)9
• C)13
• D)17
• E)22

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Definitions:

Gross Profit Method

An inventory estimation technique that calculates the cost of goods sold and ending inventory by using the gross profit margin.