Okay. So to find the percentage rate of markup from 1948 to 1967, we can write and solve a proportion. It would be set up like this: change/original = x/100. This means put the distance between two numbers and put it over the initial amount. We'll do this step by step. First off, we'll find the total overall cost. In 1948, it costed $124 dolalrs per acre. 124 * 66 is 8,184. In 1967, it costed $15,787.25 per acre. Multiply that number by 66 to get 1,041,958.5. Let's subtract the total prices. 1,041,958.5 - 8184 is 1,033,774.5. We can set up the proportion like this
1,033,774.5/8184 = x/100
$8,184 is the initial price back in 1948, before the other price of $1,033,774.50. Now, what we do is cross multiplt the values. 1,033,774.5 * 100 is 103,377,450. 8,184 * x is 8,184x. We have 103,377,450 = 8,184x. Now, divide each side by 8,184 to isolate the x. 8,184x/8,184 cancels x out. 103,377,450/8,184 is 12,631.65323 or 12,631.7 when rounded to the nearest tenth. There. The percent rate of markup from 1948 to 1967 is approx. 12,631.7%
Mortgage option (3) would be best suited for them.
Step-by-step explanation:
Mortgage option (1) and (2) are more or less the same since, since even if Damarco and Tanya down payments $34,000 (20% of the purchase price), they need to pay the interest for 30 years for both of the cases and even if he pays about $750 monthly (as for option (1)) or about $ 9000 annually (as for option (2)) both may actually be more or less the same amount since, the annual rate of interest in (2) may increase from the initial rate of 3.5% (but it is very unlikely to increase to over 5%) and option (1) has an annual fixed rate of interest of 4.25%.
Now, in the option (3) the interest is to be paid for 8 years and the annual rate of interest is also relatively low (only 4%) and if they pay about $18,000 annually with a down-payment of $ 34,000 and repay the rest of the amount at the end of 8 years,(which would be less than $ 35,000) they can easily clear their mortgage. Hence, for option (3) they would need to pay lowest total amount and for lowest time to clear the mortgage among the three options. Hence, this would be best suited option for them.
