PLEASE ANSWER ALL QUESTIONS!!!!! 1-11!!!!

Whan obtaining a mortgage, one choice you make is whether to pay points in exchange for a lower interest rate. This homework asks you to woek through the math to decide whether to do so. Scenario Details: - Amount of mortgage: $500,000 - Other closing costs: $5,500 - Length of mortgage 30 years - Morigage interest compounds montry, and payments are momithy - Expectied duration of residences 4 years Mertgage Options: - Mortgage A *interest rale: 7.5\% * Points: 0 - Morigage 8 - Pointsi 2 Further instruetions: - Round all anwwers to two decimal places. - Pay attention to negative signs. - Do not include dollar signs (5). You should choose the mortgage with the Highest present value Lowest closing costs Lowest monthly payment Lowest total cash flows QUESTION 2 What is the Davment for Mortgage A (rounded to two decimal places)? QUESTION 3 What is the Davment for Morigage B (rounded to two decimal places)? QUESTION 4 When you payoff your mortgage in four years, how much will that lump sum payment be for Mortgage A? Be sure to use the rounded mortaace Davment in this calculation. When you pay off your mortgage in four years, how much will that lump sum payment be for Mortgage B? Be sure to use the rounded mortoace Davment in this calculation. QUESTION 6 Usina a discount rate of 4.6%, what is the present value of the cash flows associated with Mortgage A. if paid off after four years? QUESTION7 Usina a discount rate of 4.6%, what is the present value of the cash flows associated with Morigage B, If paid off after four yoars? QUESTION 8 Which morgege is the better choice if you pay the mortgege off after four years? Mortgage A Mortgoge B They are the same There is no wiry to tell When you pay off your mortgage in four years, how much will that lump sum payment be for Mortgage B? Be sure to use the rounded mortasoe Davment in this calculation. QUESTION 6 Using a discount rate of 4.6%, what is the present value of the cash flows associated with Mortgage A, if paid off after four years? QUESTION 7 Ualina a discount rate of 4.6%, what is the present value of the cash flows associated with Mortgage B, If paid off after four years? QUESTION 8 Which mortgage is the better choice if you pay the mortgoge off after four years? Mortgage A Mortgage B They are the same There is no way to tell The remaining questions explore how the answers change if you repay the mortgage after just one year. Usina a discount rate of 4.61%, what is the present value of the cash flows associated with Mortgage A, if paid off atter one year? QUESTION 10 Using a discount rate of 4.61%, what is the present value of the cash flows associated with Mortgage B, if paid off after one year? QUESTION 11 Which mortgage is the better choice if you pay the mortgage off after one year? Mortgage A Mortgage B They are the sarne There is no way to tell CHek Save and Submit to save and submit. Cick Save All Answers to save all answers