Verified Answer :
It would take \(\boxed{\bf 9\text{\bf years}}\) to broke even by buying \(1\) point.
Further explanation
Given:
A Monthly mortgage payment will be \(\$958\) without buying points and monthly mortgage payment will be reducing to \(\$948.75\) buying \(1\) point.
This implies that the monthly mortgage payment decreases by buying \(1\) point.
Subtract \(\948.75\) from \(\958\).
\(\boxed{958-948.75=9.25}\)
From the above calculation it is concluded that after buying \(1\) point the monthly mortgage payment reduces by \(\$9.25\).
The amount by which the yearly mortgage payment decreases is calculated as follows:
\(\boxed{12\times 9.25=111}\)
It is given that the cost of \(1\) point is \(\$1000\).
The required number of years to break even by buying \(1\) point is calculated as follows:
\(\fbox{\begin\\\ \begin{aligned}n&=\dfrac{1000}{111}\\&=9.009\\ &\approx9\end{aligned}\\\end{minispace}}\)
Therefore, it would take \(\boxed{\bf 9\text{\bf years}}\) to break even by buying \(1\) point.
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Answer details:
Grade: Middle school
Subject: Mathematics
Chapter: Ratio and proportion
Keywords: Monthly payment, buying points, ratio, proportion, real numbers, integers, rational numbers, interest, marginal cost, revenue cost, selling price, cost price, percentage
.
Answer:
c. 9 years
Step-by-step explanation:
just took test and got it right