Assume a $250,000 mortgage loan with 15-year term. The lender is charging an ahh interest rate of 8% and three discount points at origination. Other up-front financing cos paid to other service providers (i.e., not the lender) total $1,000. What is the lender's yie on the loan? Assume monthly payments and no prepayment prior to loan maturity. ○ 8.80% O 8.51% 0.71%
Assume a $250,000 mortgage loan with 15-year term. The lender is charging an ahh interest rate of 8% and three discount points at origination. Other up-front financing cos paid to other service providers (i.e., not the lender) total $1,000. What is the lender's yie on the loan? Assume monthly payments and no prepayment prior to loan maturity. ○ 8.80% O 8.51% 0.71%
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...
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![Assume a $250,000 mortgage loan with 15-year term. The lender is charging an annual
interest rate of 8% and three discount points at origination. Other up-front financing costs
paid to other service providers (i.e., not the lender) total $1,000. What is the lender's yield
on the loan? Assume monthly payments and no prepayment prior to loan maturity.
8.80%
O 8.51%
O 0.71%
○ 8.58%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc87ff081-dc70-4a38-80b3-ca137ff665c7%2F2b36c5e3-865f-410d-885e-4135c4276c6e%2Fui84zrh_processed.png&w=3840&q=75)
Transcribed Image Text:Assume a $250,000 mortgage loan with 15-year term. The lender is charging an annual
interest rate of 8% and three discount points at origination. Other up-front financing costs
paid to other service providers (i.e., not the lender) total $1,000. What is the lender's yield
on the loan? Assume monthly payments and no prepayment prior to loan maturity.
8.80%
O 8.51%
O 0.71%
○ 8.58%
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