Question
Suppose you borrow $240,000 at 6.75% for 30 years, monthly payments with two discount points. Your mortgage contract includes a prepayment penalty of 5% over
Suppose you borrow $240,000 at 6.75% for 30 years, monthly payments with two discount points. Your mortgage contract includes a prepayment penalty of 5% over the entire loan term.
A. (1 pt) What is the APR of this loan?
B. (1 pt) What is the effective cost if you prepay the loan at the end of year five?
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Financial Management In The Public Sector Tools Applications And Cases
Authors: Xiaohu Wang
1st Edition
0765616785, 9780765616784
