Question
Suppose Emma needs to borrow $5,000,000 mortgages for 25 years. Bank A provides fixed-rate loans with 3.5%. Bank B provides B+3 loans. Bank C provides
Suppose Emma needs to borrow $5,000,000 mortgages for 25 years. Bank A provides fixed-rate loans with 3.5%. Bank B provides B+3 loans. Bank C provides C-4 with a 2.5% discount point. If B=4% and C=6.5%.
- If Emma plans to live in the house for 3 years, which bank she should borrow from?
- If Emma plans to live in the house for 18 years, which bank she should borrow from?
- How many years does Emma need to live in the house to be no difference between bank A and bank C?
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee
6th Edition
1599180219, 978-0139043437
