Sultan Real Estate development company made a fixed rate mortgage loan for TK 1000000 @12.00% for 10 years. Consider both the effects of the 2 percent loan discount and 2 percent prepayment penalty on the outstanding loan balance; calculate effective interest rate, if the loan is paid off after 5th year.

Answer rating: 100% (QA)

To calculate the effective interest rate of the mortgage loan with a loan discount and prepayment pe... View the full answer