Use the Information for the Question(s)below

question 49

Multiple Choice

Use the information for the question(s) below.
You are purchasing a new home and need to borrow $250,000 from a mortgage lender.The mortgage lender quotes you a rate of 6.25% APR for a 30-year fixed rate mortgage.The mortgage lender also tells you that if you are willing to pay 2 points,they can offer you a lower rate of 6.0% APR for a 30-year fixed rate mortgage.One point is equal to 1% of the loan value.So if you take the lower rate and pay the points you will need to borrow an additional $5000 to cover points you are paying the lender.
-Assuming you don't pay the points and borrow from the mortgage lender at 6.25%,then your monthly mortgage payment (with payments made at the end of the month) will be closest to:

• A)$694.
• B)$708.
• C)$1540.
• D)$1600.

---

Definitions:

Older Generations

Refers to the groups of people who were born several decades before the current generation, often implying they have different values, beliefs, or experiences.

Core Knowledge Perspective

A theory in cognitive development that posits children are born with an innate, basic understanding of the world.

Infants

Very young children, typically under one year of age, who are in the earliest stage of human life.

Stimuli

External or internal changes that influence the sensory organs, leading to a response from the body or brain.