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:

Business Misconduct

Inappropriate, unethical, or illegal actions conducted by individuals or entities in the context of their business operations.

Business Ethics

The principles and standards that determine acceptable conduct in business organizations.

Business Ethics

The study of appropriate business policies and practices regarding potentially controversial subjects including corporate governance, insider trading, bribery, discrimination, and social responsibility.

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The monetary amount that a share of a specific stock is considered to be worth in the marketplace.