Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A contractor took a $100,000, 9-month, 10% simple interest rate construction loan from a bank. The bank required monthly payments of this interest-only loan and

A contractor took a $100,000, 9-month, 10% simple interest rate construction loan from a bank. The bank required monthly payments of this interest-only loan and deducted a 2-point origination fee from the loan amount. How much did the contractor pay the bank on the final payment? $98,816.67 or $100,000.00 or $100,833.33 or $107,500.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions