Question
2. A couple takes out a fully amortizing fixed rate 30-year loan for $450,000. The couple makes monthly payments and the annual interest rate on
2. A couple takes out a fully amortizing fixed rate 30-year loan for $450,000. The couple makes monthly payments and the annual interest rate on the loan is 4.0%. The couple also pays 2.0 points in up-front fees to obtain the loan.
FIND: PLEASE SHOW WORK
(a) Calculate the loans APR
(b) Assuming a holding period of 11 years, calculate the loans EBC
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
