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Answer: 2 . 6 5 1 % . Please show work! A twenty - year loan of $ 2 7 , 0 0 0 is
Answer: Please show work! A twentyyear loan of $ is negotiated with the borrower agreeing to repay principal and interest at A level payment of $ will apply during the first ten years, and a higher level payment will apply over the remaining ten years. Each time the lender receives a payment from the borrower, he will deposit the portion representing principal into a sinking fund with an annual effective interest rate of This is the amount for replacement of capital. What is the lender's yield rate on this entire investment? Round your answer to three decimal places.
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