Question

Please help. Why do I keep getting the wrong answer? (Check my work) Here is question, (work is linked below)

Leah is financing $340,000 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 6.475% instead of not buying points with a rate of 6.85%?

(a)$30,398.40

(b)$3,039.84

(c)$13,239.84

(d)$20,198.40

Answer 1

How much does it cost to buy 3 points? I don't know what that really means.

Answer 2

for example, i bought 3 points, with a principal of $200,000,
0.03(200,000) = $6000 to lower the interest rate

Answer 3

Linking my work one sec

Answer 4

if you, or anyone you know, can help me understand, just tag them, i would really appreciate it!

Answer 5

Additional info : I am pretty sure B's monthly payment is wrong, but i don't know how i got it wrong

Answer 6

Let me now check your work.

Answer 7

<3

Answer 8

It looks like you calculate the higher interest payment incorrectly. You got the lower interest rate payment correct.

Answer 9

the 6.475?

Answer 10

A?

Answer 11

@ganeshie8

Answer 12

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