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.

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Definitions:

Real Number Line

A line that represents all possible real numbers, including rational and irrational numbers, in a continuous line where each point corresponds to a unique real number.

Tire Pressure

The measure of air pressure within a tire, typically measured in pounds per square inch (PSI) or bar, essential for vehicle performance and safety.

Pounds Per Square Inch

A unit of pressure represented as psi, indicating the amount of force exerted per square inch of area.

Inequality

A mathematical statement indicating that two expressions are not equal, using symbols such as <, >, ≤, or ≥.