Derek and Meagan Jacoby recently graduated from State University, and Derek accepted a Job in business consulting while Meagan accepted a job in computer programming. Meagan inhertted $70,000 from her grandfather, who recently passed away. The couple is debating whether they should buy or rent a home. They located a rental home that meets their needs. The monthly rent is $3,300. They also found a three-bedroom home that would cost $340,000 to purchase. The Jacobys could use Meagan's inheritance for a down payment on the home. Thus, they would need to borrow $270,000 to acquire the home. They have the optlon of paying two discount points to recelve a fixed interest rate of 4.50 percent on the loan or paying no points and recelving a fixed interest rate of 5.70 percent for a 30 -year fixed loan. Though anything could happen, the coyple expects to live in the home, for no more than five years before relocating to a different region of the country. Derek and Meagan don't have any school-related debt, so they wil save the $70,000 if they don't purchase a home. Also, consider the following information: - The couple's marginal tax rate is 20 percent. - Regardless of whether they buy or rent, the couple will itemize thelf deductions and have the ability to deduct all of the property taxes from the purchase of a residence. - If they buy, the Jacobys would purchase and move into the home on January 1,2023. - If they buy the home, the property taxes for the year are $4,650. - Disregard loan-related fees not mentioned above. - If the couple does not buy a home, they will put their money into thelr taxable annulty account, where they earn 4.95 percent annual interest. - Assume that all unstated costs are equal between the buy and rent options. Help the Jacobys with their decisions by answering the following questions: Note: Leave no answer blank. Enter zero if applicable. Comprehenslve Problem 14.68 Part b (Algo) b. What is the approximate break-even point in years (or months) for paying the points to receive a reduced interest rate? (To simplify this computation, assume the Jacobys wil make interest-only payments, and ignore the time value of money) Note: Do not round intermediate calculations. Round your final answer to 2 decimal places