Question: Home loans typically involve points, which are fees charged by the lender. Each point charged means that the borrower must pay 1% of the loan

Home loans typically involve points, which are fees charged by the lender. Each point charged means that the borrower must pay 1% of the loan amount as a fee. For example, if the loan is for $140,000 and 3 points are charged, the loan repayment schedule is calculated on a $140,000 loan but the net amount the borrower receives is only $135,800. Assume the interest rate is 1.25% per month. What is the effective annual interest rate charged on such a loan, assuming loan repayment occurs over 312 months? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Use a financial calculator or Excel.) I HAVE CONSTANTLY FOUND THE WRONG ANSWER. COULD YOU PLEASE HELP ME ASAP PLS? THANK YOU VERY MUCH. Home loans typically involve points, which are fees charged by the lender.

Home loans typically involve points," which are fees charged by the lender. Each point charged means that the borrower must pay 1% of the loan amount as a fee. For example, if the loan is for $140,000 and 3 points are charged, the loan repayment schedule is calculated on a $140,000 loan but the net amount the borrower receives is only $135,800. Assume the interest rate is 1.25% per month. What is the effective annual interest rate charged on such a loan, assuming loan repayment occurs over 312 months? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Use a financial calculator or Excel.) Effective annual interest rate 12.68 % Home loans typically involve points," which are fees charged by the lender. Each point charged means that the borrower must pay 1% of the loan amount as a fee. For example, if the loan is for $140,000 and 3 points are charged, the loan repayment schedule is calculated on a $140,000 loan but the net amount the borrower receives is only $135,800. Assume the interest rate is 1.25% per month. What is the effective annual interest rate charged on such a loan, assuming loan repayment occurs over 312 months? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Use a financial calculator or Excel.) Effective annual interest rate 12.68 %

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