Question
A borrower takes out a20-year mortgage for $500,000 with an interest rate of 6%. The loan requires monthly payments and has a 3% fee if
A borrower takes out a20-year mortgage for $500,000 with an interest rate of 6%. The loan requires monthly payments and has a 3% fee if the loan is repaid within 10 years. What is the effective interest rate on the loan if the borrower repays the loan after 72 payments?
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Practical Financial Management
Authors: William R. Lasher
8th edition
1305637542, 978-1305887237, 1305887239, 978-1305637542
