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The Riveras are negotiating with two banks for a mortgage to buy a house selling for $105,000. The terms at

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The Riveras are negotiating with two banks for a mortgage to buy a house selling for $105,000. The terms at bank A are a 10% down payment, an interest rate of 4%, a 30-year conventional mortgage, and 3 points to be paid at the time of closing. The terms at bank B are a 20% down payment, an interest rate of 5.5%, a 25-year conventional mortgage, and no points. Which loan should the Riveras select for the total cost of the house to be the least?

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Bank A Down payment 0 10 105 000 10 500 Amount of mortgage 105 000 10 500 94 500 At a rate of 4 for …View the full answer


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Related Book For  answer-question
A Survey of Mathematics with Applications

A Survey of Mathematics with Applications

ISBN: 978-0134112107

10th edition

Authors: Allen R. Angel, Christine D. Abbott, Dennis Runde

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Question Details
Chapter # 10- Consumer Mathematics
Section: Section 10.5
Problem: 23
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Question Posted: January 24, 2019 05:19:40
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