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Save uranswered 1.2 Assume that the points charged by Commonwealth Bank of Australia can simply be added to the mortgaged amount. That means that the

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Save uranswered 1.2 Assume that the points charged by Commonwealth Bank of Australia can simply be added to the mortgaged amount. That means that the total amount borrowed from the bank includes the points to be paid at the time the mortgage is signed, plus the net purchase price of the house (purchase price less the down payment). For example, the points that apply to a $100,000 mortgage would be $2000, so the mortgage amount would be $102,000. Which bank offers the lower monthly payments? (15 marks] H- E B i A X X , 66 paudal, Time Remaining Show a Question 2 [40 marks] Suppose you won the lottery and were offered a choice of $500,000 in cash or a gamble in which you could win $1 million based on a coin toss - heads you win, tails you lose. And now suppose you take the $500,000. You can invest it in either an Australian Treasury bond that will return $537,500 at the end of one year or a company share that has a 50:50 chance of being either worthless or worth $1,150,000 at the end of the year. Using the information provided, answer the following questions: e 2.1 What is the expected dollar profit on the security investment? (The expected profit on the T-bond investment is $37.500.) [10 marks] HEB i A. X, X , - TIL IT 66

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