About the credit quality of the borrower

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A bank makes a loan of $200,000 and will receive payments of $1,911.30 each month for 15 years. How much (in dollars) would the bank have to charge in points (or, an origination fee) if it were concerned about the credit quality of the borrower and required a 9% return on this loan? Assume that the loan goes to term.

Please provide explanation of how you did this using a financial calculator

Reference no: EM13880897

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