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25. PJ Mortgage Company is offering a $120,000, 25-year, fixed-rate mortgage at 7.25 percent interest. How many points must PJMC charge to earn a 7.50

25. PJ Mortgage Company is offering a $120,000, 25-year, fixed-rate mortgage at 7.25 percent interest. How many points must PJMC charge to earn a 7.50 percent yield if it expects the loan to be held for 10 years?

(( Please show your work ))

A. 2.19 points

B. 0.25 points

C. 1 point

D. 1.17 points

E. NONE OF THE ABOVE. THE CORRECT ANSWER IS POINTS.

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