Answer:
Giselle should purchase points to lower the interest rate of the mortage, this will make the cuota decrease.
Explanation:
163000 x20% = 32,600
163,000 - 32,600 = 130,040
current mortgage cuota:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
[tex]C \times \frac{1-(1+0.0625/12)^{-30*12} }{0.0625/12} = 130,040\\[/tex]
C= 800.68
800.68/ 2,986 = 0.2681 = 26.81%
this cuota exeeds the desired amount Giselle wants.
her couta can be as much as 2,986 x 25% = 746.5
Giselle should purchase points to lower the interest rate of the mortage, this will make the cuota decrease.
