A loan for $50,000 is made for 10 years at 8 percent interest and no monthly payments
Question:
A loan for $50,000 is made for 10 years at 8 percent interest and no monthly payments are scheduled.
a. How much will be due at the end of 10 years?
b. What will be the yield to the lender if it is repaid after 8 years? (Assume monthly compounding.)
c. If 1 point is charged in (b) what will be the yield to the lender?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Real Estate Finance and Investments
ISBN: 978-0073377339
14th edition
Authors: William Brueggeman, Jeffrey Fisher
Question Posted: