A loan with the following terms is being made: Fixed rate, constant monthly payment. Closing date February 9th. Five percent interest rate. Prepaid interest due at closing. $130,000 mortgage loan amount. $2,100 loan discount points to be paid by the buyer or borrower to the lender. 25-year term, monthly payments, fully amortizing. Required: Calculate the APR for federal truth-in-lending purposes.
A loan with the following terms is being made: Fixed rate, constant monthly payment. Closing date February 9th. Five percent interest rate. Prepaid interest due at closing. $130,000 mortgage loan amount. $2,100 loan discount points to be paid by the buyer or borrower to the lender. 25-year term, monthly payments, fully amortizing. Required: Calculate the APR for federal truth-in-lending purposes.
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 17P
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A loan with the following terms is being made:
Fixed rate, constant monthly payment. Closing date February 9th.
Five percent interest rate. Prepaid interest due at closing.
$130,000 mortgage loan amount.
$2,100 loan discount points to be paid by the buyer or borrower to the lender.
25-year term, monthly payments, fully amortizing.
Required:
Calculate the APR for federal truth-in-lending purposes.
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