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 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 do not 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)$1 540
• B)$1 500
• C)$1 570
• D)$1 530

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Definitions:

Identity

A person's understanding of who they are, including their traits, beliefs, and sense of self, which can evolve over time.

Dependence

Dependence refers to a condition where an individual relies on a substance, activity, or another person for their psychological or physical well-being.

Moro Reflex

An involuntary response seen in infants, where they suddenly extend their arms and legs and cry when startled.

Startle Reflex

An involuntary reaction in response to a sudden, unexpected stimulus, usually a loud noise or a sudden movement, demonstrating the body's rapid defensive mechanisms.