Question: How to solve these two questions.With explanation 19) A borrower takes out a 30-year mortgage loan for $100,000 with an interest rate of 6% plus

How to solve these two questions.With explanation

19) A borrower takes out a 30-year mortgage loan for $100,000 with an interest rate of 6% plus 4 points. What is the effective annual interest rate on the loan if the loan is carried for all 30 years? A) 5.6% B) 6.0% C) 6.4% D) 6.6% Answer: C 20) A borrower obtains a $150,000 reverse mortgage with monthly payments over 10 years. If the interest rate of the mortgage loan is 8%, what is the monthly payment received by the borrower? A) $820 B) $863 C) $1,250 D) $1,820 Answer: A le family residential

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