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John wants to buy a property for $ 1 1 8 , 7 5 0 and wants an 8 0 percent loan for $ 9

John wants to buy a property for $118,750 and wants an 80 percent loan for $95,000. A lender indicates that a fully amortizing loan can be obtained for 30 years (360 months) at 8 percent interest; however, a loan fee of $4.600 will alsq be necessary for John to obtain the loan.
Required:
a. How much will the lender actually disburse?
b. What is the APR for the borrower, assuming that the morigage is pald off after 30 years (full term)?
c. If John pays off the loan after five years, what is the ellective interest rate?
d. Assume the lender also imposes a prepayment penalty of 2 percent of the outstanding loan balance if the loan is repald within eight years of closing. If John repays the loan after five years with the prepayment penally, what is the effective interest rate?
Complete this question by entering your answers in the tabs below.
If John pays off the loan after five years, what is the effective interest rate?
Note: Do not round intermediate calculations, Round your Inal answer to 2 decimal places.
Elective nterest rate
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