Rose and andrew are financing 128,000 to purchase a condominium. they obtained a 15 year fixed rate loan with a rate of 5.05%. they have been given the option of purchasing up to four points to lower their rate to 4.81%. how much will the 4 points cost them?

Amount Financed(P) = $ 128,000

Time = 15 year

Rate of interest= 5.05%

Amount after 15 years translates to,

Rose and Andrew has taken four points to lower their rate to 4.81% .

   Amount after 15 years translates to, if rate of interest is 4.83 %

Cost of four points = 268,009.890 - 259,713.0404

                = $8296.8496

i would say c is the best answer, hope it's right!

good luck! =)

cutie~

the two may have that, even a breakdown is probably offered