Question
On the following loan, what is the best estimate of the effective borrowing cost if the loan is prepaid in six years? Loan: $100,000 Interest
On the following loan, what is the best estimate of the effective borrowing cost if the loan is prepaid in six years?
Loan: $100,000
Interest rate: 9 percent
Term: 180 months
Up-front costs: 7 percent of the loan amount
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The Economics Of Money Banking And Financial Markets
Authors: Frederic S. Mishkin
12th Global Edition
1292268859, 978-1292268859
