Question
You have just borrowed $120,000 to buy a condo. You will repay the loan in equal monthly payments of $1,580.15 over the next 20 years.
You have just borrowed $120,000 to buy a condo. You will repay the loan in equal monthly payments of $1,580.15 over the next 20 years.
a.What monthly interest rate are you paying on the loan?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
b.What is the APR?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
c.What is the effective annual rate on that loan?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
d.What rate is the lender more likely to quote on the loan?
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Financial Modeling
Authors: Simon Benninga
2nd Edition
0262024829, 9780262024822
