Question
A lender makes a loan of $100,000 at a 6% interest rate for 25 years with monthly payments. The lender will require an origination fee
A lender makes a loan of $100,000 at a 6% interest rate for 25 years with monthly payments. The lender will require an origination fee of $1,000 and will also discount the loan by some amount.
PART C- Suppose the lender discounts the loan by the amount calculated in the last question. What is the annual percentage rate (APR) on this loan?
a. 5.45%
b. 6.00%
c. 6.11%
d. 6.20%
e. 6.65%
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Production And Operations Analysis
Authors: Steven Nahmias, Tava Lennon Olsen
7th Edition
1478623063, 9781478623069
