Question
Your local lender offers you a fixed-rate mortgage with the following terms: $300,000 at 6.25% for 30 years, monthly payments. The lender will charge you
Your local lender offers you a fixed-rate mortgage with the following terms: $300,000 at 6.25% for 30 years, monthly payments. The lender will charge you two discount points and the loan has a 4% prepayment penalty.
A. (1 pt) What is the annual percentage rate (APR) of the loan?
B. (1 pt) How many points are required to yield an APR of 6.75%?
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Financial Management In The Public Sector Tools Applications And Cases
Authors: Xiaohu Wang
1st Edition
0765616785, 9780765616784
