Question: You borrow a $ 2 , 0 0 0 , 0 0 0 conventional loan with a 1 5 year amortization, 6 % interest rate

You borrow a $2,000,000 conventional loan with a 15 year amortization, 6% interest rate and monthly payments. The bank requires you to pay 2 points at closing. What is your effective interest rate?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Need help figuring out problem #40, #42, and #45 in the attached document. I have the answers for the problems, but need to see how they are worked out. FIN 142 - Real Estate Finance Problem Set 2 1....

Q:

118 FX E A B D 1 2 Country US Iceland 3 4 0.76 5 US Year 1: Interest Rate Year 2: Interest Rate Year 3: Interest Rate Year 4: Interest Rate 5.15 5.27 2.96 0.56 12.35 14.29 15.82 11.28 Year 1:...

Q:

10 100% Se $ %0.00 123 Default (Ari.. BI . A 10 fx D E B 1 2 Country US Iceland 3 4 5 US Iceland Year 1: Interest Rate Year 2: Interest Rate Year 3: Interest Rate Year 4: Interest Rate 5.15 5.27 2.96...

Q:

1004 Project Questions Questions and Calculations 1. What is the 30 year fixed "purchase money" market Interest rate at your bank? 2. What is the "APR" for #1? (you do not have to calculate this, it...

Q:

Please answer the following question, showing all work accordingly on ALL sections. Thank you in advance. For this project you will have to contact a local bank and get information about their...

Q:

please fill out charts showing excel formulas! 2 3 4 You are investing in a 250 unit student housing complex that you bought for $21,000,000 and plan to sell the property in 12 vears. You financed...

Q:

you will have to go or contact to 2 local banks and get information about their mortgage products. You would like to finance the purchase of a new house. The house is worth $300,000. And you want to...

Q:

Question 1 PRESENT VALUE AND LOAN ELIGIBILITY You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is $350. The loan would have a 12% annual interest...

Q:

1. If you deposit $4000 into an account paying 6% annual interest compounded quarterly, how much money will be in the account after 5 years? 2. If you deposit $6500 into an account paying 8% annual...

Q:

Calvin and his wife Susie live in Watterson, California which is a moderate sized town between Sacramento and Chico. They have been pretty successful in their financial lives over the years and own a...

Q:

If you buy a bond with face value of 6000. The bond is supposed to give you 10% coupon for next 12 years; which is its maturity date. Your required rate of return is 15%. What is maximum amount that...

Q:

You are to create a Python program with the following characteristics: . Menu driven program Properly commented Read data from a file the user supplies o For our example use crime.csv as you sample...

Q:

2 . Why were the dividends per common share were less for the second assumption? The total dividend amount and dividends per share of common shares were less under the second assumption because the...

Q:

the strategic asset allocation refer to: Group of answer choices how much to invest in stocks, bonds both corporate and government bonds, cash how much to spend on gold how much to allocate to...

Q:

1 If you were designing the overall training and development strategy for Hilton, in what areas would you seek to supplement elearning, and what approaches to training in these areas would you...

Q:

3 How can national schemes be supportive of training in organisations?

Q:

1 What is meant by systematic training?