You buy a home for $182,251 and put $13,298 down. You borrow the remainder. The mortgage company also charges a 3% loan and closing fee which you must also borrow. The interest rate is 7.5% for 30 years. What is the actual APY (the actual interest rate they will have paid)? 10.6% 11% 11.5% 10.5%
You buy a home for $182,251 and put $13,298 down. You borrow the remainder. The mortgage company also charges a 3% loan and closing fee which you must also borrow. The interest rate is 7.5% for 30 years. What is the actual APY (the actual interest rate they will have paid)? 10.6% 11% 11.5% 10.5%
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter22: Providing And Obtaining Credit
Section: Chapter Questions
Problem 2P: Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for...
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You buy a home for $182,251 and put $13,298 down. You borrow the remainder. The mortgage company also charges a 3% loan and closing fee which you must also borrow. The interest rate is 7.5% for 30 years. What is the actual APY (the actual interest rate they will have paid)?
| 10.6% |
| 11% |
| 11.5% |
| 10.5% |
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