Suppose you had to choose between a 12% 30-year mortgage or an 10.8% mortgage with 3 discount points. The monthly payment for the 12% mortgage is $1028.61. Assume you wished to borrow $100,000. What will be the monthly payment if you want to buy the 3 discount points.

	A.	$907.24.
	B.	$937.24
	C.	$967.24
	D.	$997.24

If the 2015 inflation rate in Britain is 6 percent, and the inflation rate in the U.S. is 4 percent, then the theory of purchasing power parity predicts that, during 2015, the value of the British pound in terms of U.S. dollars will

	A.	fall by 2 percent.
	B.	rise by 2 percent
	C.	rise by 10 percent.
	D.	fall by 10 percent.