I have the progress, but i don't know what i have to fix

23. The buyer of a piece of real estate is often given the option of buying down the loan. This option gives the buyer a choice of loan terms in which various combinations of interest rates and discount points are offered. The choice of how many points and what rate is optimal is often a matter of how long the buyer intends to keep the property. Darrell Frye is planning to buy an office building at a cost of $988,000. He must pay 10% down and has a choice of financing terms. He can select from a 7% 30-year loan and pay 4 discount points, a 7.25% 30-year loan and pay 3 discount points, or a 7.5% 30-year loan and pay 2 discount points. Darrell expects to hold the building for four years and then sell it. Except for the three rate and discount point combinations, all other costs of purchasing and selling are fixed and identical. a. What is the amount being financed? b. If Darrell chooses the 4-point 7% loan, what will be his total outlay in points and payments after 48 months? C. If Darrell chooses the 3-point 7.25% loan, what will be his total outlay in points and payments after 48 months? d. If Darrell chooses the 2-point 7.5% loan, what will be his total outlay in points and payments after 48 months? e. Of the three choices for a loan, which results in the lowest total outlay for Darrell? () "Down payment 10% of 988000 988000 x0.10 =98800 Amant frances -988000 - 2898860 = 8892007 From the abole table for the factor for 7% 30 years is 6.66. Number of 1000 financed Amount financed 889200 85920 TOOO 1000 Find the Amount paid in 48 moths. 5922.07 148 284259,36 * 4 point 889200 X4% = 889 200 K0.04 = 35568 284 259.36 +35562 = 319827.36 367 From the above table the factor for 7.25%, 30 years is 6.83 Momber of 1000 financed - Amocht Franced 1000 =8892 Monthly payment = 889.20 86.83 = 6073.24 Amount paid = 6073.24 X 48 = 291515.33 -889200 TOOO 3point = 889,200 X3% -889200 x0.03 = 2667600/ 291515.33 +26676 = 318191.33 Down payment = 10% of 988000 988000 x0,10 -98800 Amount financed - 988000 - 4898800 = 889200 From the above table for the factor for 7% 30-years 56.66. Number of 1000 financed - Amount financed 889200 889.20 1000 1000 Find the Amount paid in 48 moths, 5922,07 148 = 284259,36 * 4 point : 889200 X4% =889 200 x0.04 = 35568 284259.36 +35568 = 319827.36 You have to deduct this amount from here From the able to be the factor for 7.25%, soybeforefinding the Member of 1000 finances - Amocht finances monthy payment 1000 because the points are =889.2 paid up front Monthly payment = 889.20 86.83 = 6073,24 - 889 200 1000 hZ24 X40 23. The buyer of a piece of real estate is often given the option of buying down the loan. This option gives the buyer a choice of loan terms in which various combinations of interest rates and discount points are offered. The choice of how many points and what rate is optimal is often a matter of how long the buyer intends to keep the property. Darrell Frye is planning to buy an office building at a cost of $988,000. He must pay 10% down and has a choice of financing terms. He can select from a 7% 30-year loan and pay 4 discount points, a 7.25% 30-year loan and pay 3 discount points, or a 7.5% 30-year loan and pay 2 discount points. Darrell expects to hold the building for four years and then sell it. Except for the three rate and discount point combinations, all other costs of purchasing and selling are fixed and identical. a. What is the amount being financed? b. If Darrell chooses the 4-point 7% loan, what will be his total outlay in points and payments after 48 months? C. If Darrell chooses the 3-point 7.25% loan, what will be his total outlay in points and payments after 48 months? d. If Darrell chooses the 2-point 7.5% loan, what will be his total outlay in points and payments after 48 months? e. Of the three choices for a loan, which results in the lowest total outlay for Darrell? () "Down payment 10% of 988000 988000 x0.10 =98800 Amant frances -988000 - 2898860 = 8892007 From the abole table for the factor for 7% 30 years is 6.66. Number of 1000 financed Amount financed 889200 85920 TOOO 1000 Find the Amount paid in 48 moths. 5922.07 148 284259,36 * 4 point 889200 X4% = 889 200 K0.04 = 35568 284 259.36 +35562 = 319827.36 367 From the above table the factor for 7.25%, 30 years is 6.83 Momber of 1000 financed - Amocht Franced 1000 =8892 Monthly payment = 889.20 86.83 = 6073.24 Amount paid = 6073.24 X 48 = 291515.33 -889200 TOOO 3point = 889,200 X3% -889200 x0.03 = 2667600/ 291515.33 +26676 = 318191.33 Down payment = 10% of 988000 988000 x0,10 -98800 Amount financed - 988000 - 4898800 = 889200 From the above table for the factor for 7% 30-years 56.66. Number of 1000 financed - Amount financed 889200 889.20 1000 1000 Find the Amount paid in 48 moths, 5922,07 148 = 284259,36 * 4 point : 889200 X4% =889 200 x0.04 = 35568 284259.36 +35568 = 319827.36 You have to deduct this amount from here From the able to be the factor for 7.25%, soybeforefinding the Member of 1000 finances - Amocht finances monthy payment 1000 because the points are =889.2 paid up front Monthly payment = 889.20 86.83 = 6073,24 - 889 200 1000 hZ24 X40