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The credit union offered Zach a $200,000, 10 year loan at a 3.625% APR. The bank offers Zac...
Mathematics, 24.03.2020 15:35 Jenniferlam12
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The credit union offered Zach a $200,000, 10 year loan at a 3.625% APR. The bank offers Zach the option to purchase points at a cost of 1% of the loan amount. Each point purchased lowers the APR by 0.125%
Part A
About how many years will it take Zach to break-even if he purchases 1 point? years
Part B
Should Zach purchase the points?
Answers: 3
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