A borrower would like to borrower $66,000 to finance a property for 30 years at 16.1% interest.
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Question:
A borrower would like to borrower $66,000 to finance a property for 30 years at 16.1% interest. The lender indicates that loan fees (origination and discount points) equal to 3.9% of the loan amount will be charged to obtain the loan. What is the effective borrowing cost for this loan?
Please show math
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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