Question: Ann has just signed a 3 0 - year fixed - rate loan at 4 % with no discount points. Bob wonders how many discount

Ann has just signed a 30-year fixed-rate loan at 4% with no discount points. Bob wonders how many discount points he is to pay today to secure a 30-year fixed-rate loan for the same amount at 3.8% so that his loan is financially equivalent to that of Anns assuming that both are planning to live in their houses for at least 30 years?

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