Question
A mortgage company advertises that their 7% APR is an effective annual rate of 8.05% with monthly payments and compounding. Let's assume this is made
A mortgage company advertises that their 7% APR is an effective annual rate of 8.05% with monthly payments and compounding. Let's assume this is made possible by paying points on a mortgage (one point is 1% of the loan amount). How many points are being paid up front on a $90000 mortgage loan over 12 years to arrive at an effective interest rate of 8.05%?
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Mastering Attribution In Finance
Authors: Andrew Colin
1st Edition
1292114029, 978-1292114026
