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What is the annual percentage rate of the loan

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Reference no: EM131840010

1. Your local lender offers you a fixed-rate mortgage with the following terms: $160,000 at 4.25% for 30 years, monthly payments. The lender will charge you two discount points and the loan has a 3% prepayment penalty.

A. What is the annual percentage rate (APR) of the loan?

B. How many points are required to yield an APR of 4.625%?

2. Suppose you take a fixed-rate mortgage for $180,000 at 5% for 30 years, monthly payments.

A. How much of the payment is interest for month 100?

B. How much interest do you pay in the first six years?

Reference no: EM131840010

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