Question

Nell's mortgage is $50,150 at 10 percent for 30 years. What is her monthly payment if she must pay $8.78 points per $1,000?

a) $440.32
b) $439
c) $442.95
d) $385.89

Answer 1

The right answer for the question that is being asked and shown above is that: "d) $385.89." Nell's mortgage is $50,150 at 10 percent for 30 years. Her monthly payment if she must pay $8.78 points per $1,000 is that of d) $385.89

Answer 2

The correct option is a.

Explanation:

It is given that Nell's mortgage is $50,150 at 10 percent for 30 years and she must pay $8.78 points per $1,000.

EMI on $1000 is $8.78, so EMI on $1 is

`\text{EMI on }\$1=(8.78)/(1000)=0.00878`

EMI on $50150 is

`\text{EMI on }\$50150=0.00878* 50150=440.317\approx 440.32`

Therefore the correct option is a.