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%?

$30,398.40

$3,039.84

$13,239.84

$20,198.40

save money = $20198.40

Explanation:

given data

financing amount =  $340,000

time period = 30 year

rate with 3 point = 6.475%

rate without point = 6.85%

solution

first we get here monthly payment at 6.475% that is in excel we get

monthly payment = PMT(6.475%/12, 30×12, -340000)

monthly payment = $2143.44

so here pay total interest will be

total interest = $2143.44 ×(30×12) -340000 + (340000 ×3%)

total interest = $441838.40

and

monthly payment at 6.85% that is in excel we get

monthly payment = PMT(6.85%/12, 30×12, -340000)

monthly payment = $2227.88

so here pay total interest will be

total interest = $2227.88 ×(30×12) -340000

total interest = $462036.80

so here money save over this loan amount is

save money = $462036.80  - $441838.40

save money = $20198.40

like many students at university, you may be unhappy about the results you attain in exams. you may feel that even with all you are doing there must be something more -- or different-- you could be doing to get better grades. we have all at some time or other heard of that student who only studies a couple of hours for final exams and scores a's every time. we stand in awe of those who seem to breeze through without undue effort and seem to need very little in the way of studying to nail an exam. the reasons for success, in what i think are the vast majority of cases, are less esoteric than many students think: successful students consistently apply a series of productive strategies with view to attaining clearly identified learning and grade goals throughout the academic term.

answer: no

explanation:

i thought it would be hard. yeah it took a little while to get used to but in all you will be fine. just do your work and stay out of drama.