Question

Lucy is financing $370,000 to purchase a house. How much money will she save over the life of a
30-year, fixed-rate loan by buying 3 points with a rate of 6.175% instead of not buying points with a rate of 6.55%?

$21,548.40

$14,364.84

$3,264.84

$32,648.40

Answer 1

@FriedRice

Answer 2

1) 3 points=3% x 370000 = 11,000 so PV=359000
Payment =PV(i/n)/[1 - [[1 /1+ i/n]]^t*n]
P=359000(.06175/12)/[1-[[1/1+0.06175/1…
359000(.00515)/[1-[[.99488]^360]]
1848.85/[1-.15759]
pmnt=2,194.72
you can do it for the 6.55% and this should work for most of the other questions

Answer 3

Like what do I do from here to find the answer???

Answer 4

I = PRT
I = Interest
P = Percent
R = Rate
T = Time

Answer 5

P means The amount

Answer 6

Ok

Answer 7

So can you help me solve it

Answer 8

sure

Answer 9

what will be the interest

Answer 10

6.175%?

Answer 11

that's the interest rate

Answer 12

ok we got this part I = P(6.175)(T)

Answer 13

ok now what is the amount?

Answer 14

$370,000 is the amount
we got I = (370000)(6.175)(T)

Answer 15

and the time is 30 years so
I = (370000)(6.175)(30)
so what would the Interest be or I?

Answer 16

68542500

Answer 17

ok then devide what we got last time 2,194.72

Answer 18

so its closest to D
that must be your answer

Answer 19

thank you so much can you help with a few more please??

Answer 20

I g2g

Answer 21

sorry ill call hero or someone else

Answer 22

@satellite73

Answer 23

@amistre64

Answer 24

Ok I am going to post them hopefully they help...

Answer 25

@saifoo.khan

Answer 26

@whpalmer4

Answer 27

if you have another question, you should make another post.