What is the effective annual interest rate on the loan

Assignment Help Business Management

Reference no: EM13720777

A borrower takes out a 30-year mortgage loan for $100,000 with an interest rate of 6% plus 4 points. What is the effective annual interest rate on the loan if the loan is carried for all 30 years?

Reference no: EM13720777

Questions Cloud

About prepayment penalties : Which one of the following is TRUE about Prepayment penalties?

Investment earns problem : If an investment earns 12% annually: An equivalent monthly investment would have to earn a higher equivalent nominal rate to yield the same return. An equivalent monthly investment would have to earn a lower equivalent nominal rate to yield the same ..

Loan balance of a constant payment mortgage is simply : At the end of five years, calculating the loan balance of a constant payment mortgage is simply the: (A) Present value of a single amount (B) Future value of a single amount (C) Present value of an ordinary annuity (D) Future value of an ordinary ann..

What is the yield at maturity at a current market price : Bonds have 5 yrs left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 8%. What is the yield at maturity at a current market price of $800 $1200? If a "fair" market interest rate for such bonds was 12..

What is the effective annual interest rate on the loan : A borrower takes out a 30-year mortgage loan for $100,000 with an interest rate of 6% plus 4 points. What is the effective annual interest rate on the loan if the loan is carried for all 30 years?

Assignment on technology and organizational behavior issues : Describe the culture of your organizational behavior issues and what challenges are present. Discuss the systems that are the most appropriate to introduce into your organization.

Whats the change in cash flow : A company is in a 43% tax bracket. It invests in assets that increase the depreciation expense by $606 per year. What’s the change in cash flow?

What is the fixed cost and what is the variable cost : Simon Tam is negotiating passage on Serenity as a clandestine fugitive from the planet Persephone. He is told that the 184 million kilometre trip to Osiris will cost $3,230. Alternatively, he can take a 344 million kilometre trip to Bellerophon, but ..

Article related to the trade theories : At least one peer-reviewed article related to the trade theories in general as well as for China and India

User Account

All Pages