Question

CAN SOMEONE PLEASE HELP ME..
Purchasing discount points is a decision which can be financially justified or not justified. Create a unique example where purchasing discount points is not justified, solve the problem, and explain why the decision isn’t justified.

Answer 1

I really need help

Answer 2

@jim_thompson5910
@Mertsj

Answer 3

I'm sorry...I don't know about this topic.

Answer 4

@Mertsj Do you know anyone that does?

Answer 5

try ybarrap

Answer 6

ok thankss

Answer 7

@ybarrap

Answer 8

I'm not familiar with the term, but I may have used it when buying a home. Is purchasing discount points related to paying to have a lower interest rate for a home, for example? In that case, you need to see if the discount received is justified long-term, depending on the length of the mortgage (for example). You can use present worth, future value-type formulae. Say you paid 1% of the mortgage to lower your interest by 1%. Would that be worth it long-term, say on a 30-year note. You can use compounding formula to determine what it would be with and without the discount to see if its worth paying the 1% upfront.