Use the Information for the Question(s)below

question 38

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 two 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 $5 000 to cover points you are paying the lender.
-Assuming you pay the points and borrow from the mortgage lender at 6.00%, then your monthly mortgage payment (with payments made at the end of the month) will be closest to:

• A)$1 570
• B)$1 540
• C)$1 530
• D)$1 500

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Definitions:

NLRA

The National Labor Relations Act, a foundational statute in United States labor law that protects the rights of employees to organize and to bargain collectively with their employers.

Secondary Boycotts

A form of protest by labor unions where they boycott or picket against a company that does business with another company that is the subject of a primary boycott.

Bargaining Items

Specific issues or demands that are discussed and negotiated during collective bargaining sessions between employers and unions.

NLRA

The National Labor Relations Act of 1935, a foundational statute in United States labor law which grants workers the right to form unions and engage in collective bargaining.