You are looking at a one-year loan of $16,500. The interest rate is quoted as 7.7 percent plus two points. Apointon a loan is simply 1 percent (one percentage point) of the loan amount. Quotes similar to this one are very common with home mortgages. The interest rate quotation in this example requires the borrower to pay two points to the lender up front and repay the loan later with 7.7 percent interest.

You are looking at a msyear loan of $16.50!]. The interest rate Is minted as T} percent pins Mo points. A point on a loan is simply 1 percent {one penmntags point} of the loan amount. Quotes similar to this one are very DDI'I'H'I'IDI'I with home mortgages. The interest rate quotation in this example requires the borrower to pay two points to the lender up frent end repay the bean later with 17' percent interest. What rate Irmr-oulrl you actually be paying here? [Do not round Intermediate calculations and enter your anew-er as a percent rounded 11: 2 decimal please, e.., 32.15.] i Tit? What is the EAR for a one-yew teen with a quoted interest rate of 111.? percent plus two poinm? [Do not round intermediate calculations and enter your anew a: a percent rounded to 2 decimal places. e.u.. 31.15.] M? 1]?1i Is your anser aeeted by the loan amount? H'N l_ _ "Q C' .'rias