Question
A mortgage loan for $100,000 is made at 3% APR for 30 years. There is a $3,000 fee that the borrower pays making the net
A mortgage loan for $100,000 is made at 3% APR for 30 years. There is a $3,000 fee that the borrower pays making the net proceeds from the loan $97,000. What is the effective interest rate on this loan? [Hint: The monthly payments are based on the full loan amount of $100,000.] Report the rate as an APR without the % symbol. Round your answer to two decimal places.
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Financial Accounting Essentials You Always Wanted To Know Self Learning Management Series
Authors: Vibrant Publishers , Kalpesh Ashar
5th Edition
1636510973, 978-1636510972
