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A local mortgage broker has arranged a mortgage for $240,000. The borrower has agreed to pay a brokerage fee of $5,000, which is to
A local mortgage broker has arranged a mortgage for $240,000. The borrower has agreed to pay a brokerage fee of $5,000, which is to be added to the loan amount, giving a face value of $245,000 for the loan. The loan is to be repaid using monthly payments of $1,882.40 over a 25-year amortization and term. What is the equivalent periodic interest rate, expressed as a rate per month on the funds advanced, rounded to two decimal places?
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Where M is the monthly payment P is the principal loan amount r is the monthly interest rate n is th...
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Advanced Financial Accounting
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
6th edition
013703038X, 978-0137030385
