The figure below shows costs for a current home mortgage versus a refinanced home mortgage. Refinancing has initial costs but results in a lower monthly payment. Which best describes the lines?

Holt Mcdougal Larson Pre-algebra: Student Edition 2012
1st Edition
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Chapter7: Percents
Section7.5: Percent Of Change
Problem 1C
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The figure below shows costs for a current home mortgage versus a refinanced home mortgage. Refinancing has initial costs but results in a lower monthly payment. Which best describes the lines?

 

    1. The blue line is for refinancing ,which is always cheaper.

       
    2. The red line is for refinancing, which is always cheaper.

       
    3. The blue line is for the current mortgage, which is always more expensive.

       
    4. The red line represents refinancing, which cheaper after 6 months. 

       
14000
12000 +
10000
8000
6000
4000
2000
+
9.
10
4
6.
Months
Total cost ($)
Transcribed Image Text:14000 12000 + 10000 8000 6000 4000 2000 + 9. 10 4 6. Months Total cost ($)
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