A credit union is offering a $425,000 30 year loan with an annual rate of 4.1% with 1.4 points or 3.8% with 1.75 points. If a borrower chooses the second loan, how many months will it take to recoup the additional cost in points? Round your answer to the nearest month. ? Months.
A credit union is offering a $425,000 30 year loan with an annual rate of 4.1% with 1.4 points or 3.8% with 1.75 points. If a borrower chooses the second loan, how many months will it take to recoup the additional cost in points? Round your answer to the nearest month. ? Months.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 15P
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A credit union is offering a $425,000 30 year loan with an annual rate of 4.1% with 1.4 points or 3.8% with 1.75 points. If a borrower chooses the second loan, how many months will it take to recoup the additional cost in points? Round your answer to the nearest month.
? Months.
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