Assume a $250,000 mortgage loan with 15-year term. The lender is charging an annualinterest rate of 8% and three discount points at origination. Other up-front financing costspaid to other service providers (i.e., not the lender) total $1,000. What is the lender's yieldon 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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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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