Question
Mr. Bob White is offered a mortgage loan for $100,000 with an interest rate of 10% and a 30-year amortization period with monthly payments. The
Mr. Bob White is offered a mortgage loan for $100,000 with an interest rate of 10% and a 30-year amortization period with monthly payments. The origination fee is 1% of the loan and the lender charges two discount points. What is the effective interest rate for the lender?
| a. | 10.24% | |
| b. | 10.37% | |
| c. | 9% | |
| d. | 10% |
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
