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PLEASE HELP ME SOLVE THIS WITH FINANCIAL CALCULATOR / EXCEL FINANCIAL FUNCTIONS PLEASE HELP ME SOLVE THIS WITH FINANCIAL CALCULATOR / EXCEL FINANCIAL FUNCTIONS You
PLEASE HELP ME SOLVE THIS WITH FINANCIAL CALCULATOR / EXCEL FINANCIAL FUNCTIONS
PLEASE HELP ME SOLVE THIS WITH FINANCIAL CALCULATOR / EXCEL FINANCIAL FUNCTIONS
You are planning to buy a property for $2,650,000 and want a 90 percent LTV loan. A lender indicates that the loan can be obtained for 30 years at 4.75 percent interest; however, two discount points will also be necessary for you to obtain this loan. a. What is the effective interest cost to the borrower, assuming that the mortgage is paid off after 30 years (full term)? b. Assume the lender also imposes a prepayment penalty of 2 percent of the outstanding loan balance if the loan is repaid within eight years of closing. If you repay the loan after five years with the prepayment penalty, what is the effective interest costStep by Step Solution
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