Question 1173150
Let's break down Darrell Frye's loan options and calculate his total outlay for the 9% loan with 4 discount points.

**1. Calculate the Down Payment:**

* Down payment = 10% of $989,000 = $98,900

**2. Calculate the Loan Amount:**

* Loan amount = $989,000 - $98,900 = $890,100

**3. Calculate the Cost of Discount Points:**

* Discount points = 4% of $890,100 = $35,604

**4. Calculate the Monthly Payment for the 9% Loan:**

* We'll use the mortgage payment formula:
    * M = P [ i(1 + i)^n ] / [ (1 + i)^n  -  1]
    * Where:
        * M = Monthly payment
        * P = Principal loan amount ($890,100)
        * i = Monthly interest rate (9% / 12 = 0.75% or 0.0075)
        * n = Total number of payments (30 years * 12 months/year = 360 months)

* M = $890,100 [ 0.0075(1 + 0.0075)^360 ] / [ (1 + 0.0075)^360  -  1]
* M = $890,100 [ 0.0075(15.9085) ] / [ 15.9085  -  1]
* M = $890,100 [ 0.11931375 ] / [ 14.9085 ]
* M = $890,100 * 0.00800313
* M = $7,123.69 (approximately)

**5. Calculate the Total Payments After 24 Months:**

* Total payments = $7,123.69 * 24 = $170,968.56

**6. Calculate the Total Outlay:**

* Total outlay = Cost of discount points + Total payments
* Total outlay = $35,604 + $170,968.56 = $206,572.56

**Therefore, if Darrell chooses the 4-point 9% loan, his total outlay in points and payments after 24 months will be approximately $206,572.56.**