Use Estimation to Select the Best Response

Multiple Choice

Use estimation to select the best response. Do not calculate. A $147,000 30-year loan at 10% + 1.5 points + $200 would have a comparison rate of __________.

A) 10%
B) 1.5%
C) less than 1.5%
D) more than 10%
E) less than 10% but more than 1.5%