Determine the cost of the points and the new interest rate for each loan amount and interest
Question:
Determine the cost of the points and the new interest rate for each loan amount and interest rate. Assume each point costs 1% of the loan amount.
a. $400,000, original APR 4.1%, 1 point with a 0.2% discount
b. $250,000, original APR 3.95%, 2 points with a 0.25% discount per point
c. $300,000, original APR 3.51%, 3 points with a 0.125% discount per point
d. $550,000, original APR 4.75%, 1 point with a 0.3% discount
e. $1,000,000, original APR 4.45%, 2 points with a 0.215% discount per point
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a Determine the new interest rate 002 400000 8000 Total Interest 400000 ...View the full answer
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Related Book For 
Financial Algebra Advanced Algebra With Financial Applications
ISBN: 9781337271790
2nd Edition
Authors: Robert Gerver, Richard J. Sgroi
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