(Solved): (Buy-down financing) You are buying a new house from a builder for $225,000, financed with a loan o ...

(Buy-down financing) You are buying a new house from a builder for $$\$225,000$$, financed with a loan of $$\$200,000$$ at $$7\%$$ for 30 years from your bank. Alternatively, the builder is offering to "buy down" your mortgage payment on the above $$\$200,000$$ loan by $$50\%$$ for the first 2 years (meaning you will save $$50\%$$ of the regular monthly payment for the 2 years), after which time the regular payment will resume. What is the maximum extra price you are willing to pay if you take the builder's buy down finance? $$\begin{array}{c}14,860\\ 10,000\\ 16,320\\ 17,580\end{array}$$