You have the choice between 2 loans. Option A is a 15 year loan at 6.5% with

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You have the choice between 2 loans. Option A is a 15 year loan at 6.5% with a 2 point fee. Option B is a 20 year loan at 7% with a 2.5% fee.

Which loan should you take and why? Support the answer with both math and logic.

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Feb 19, 2024 07:48 AM

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You have the choice between 2 loans. Option A is a 15 year loan at 6.5% with

Question:

Expert Answer:

To determine which loan is more advantageous we need to compare the total cost of each loan over its ... View the full answer

Income Tax Fundamentals 2013

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