Question
You have just borrowed $230,000 to buy a condo. You will repay the loan in equal monthly payments of $2,422.42 over the next 25 years.
You have just borrowed $230,000 to buy a condo. You will repay the loan in equal monthly payments of $2,422.42 over the next 25 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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The Handbook Of European Fixed Income Securities
Authors: Frank J. Fabozzi, Moorad Choudhry
1st Edition
0471430390, 978-0471430391
