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what is the effective yield? A property is purchased for $73,000. The purchase is financed with a GPM carrying a 12 percent interest rate. A
what is the effective yield?
A property is purchased for $73,000. The purchase is financed with a GPM carrying a 12 percent interest rate. A 7.8 percent rate of graduation will be applied to monthly payments beginning each year after the loan is originated for a period of five years. The initial loan amount is $65,700 for a term of 30 years. The homeowner expects to sell the property after seven years. Required: a. If the initial monthly payment is $519.93, what will the payments be at the beginning of years 2,3,4, and 5 ? b. What would the payment be if a CPM loan was available? c. Assume the loan is originated with two discount points. What is the effective yleld on the GPM? Complete this question by entering your answers in the tabs below. Assume the loan is originated with two discount points. What is the effective yield on the GPM? (Do not round intermediate calculations. Round your final answer to 2 decimai places.) Step by Step Solution
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