You want to buy a $280000 home. You plan to pay $56000 as a down payment, and take out a 15 year loan at 3.5% interest for the rest. a) What is the amount of the payment? $1601.34 b) If the bank charges 3 points on the loan, what is the amount charged for points? $6720 PLEASE ONLY ANSWER C, ALL OTHER QUESTIONS ARE ANSWERED. c) If the bank charges 3 points on the loan, what is the true interest rate?

You want to buy a $280000 home. You plan to pay $56000 as a down payment, and take out a 15 year loan at 3.5% interest for the rest. a) What is the amount of the payment? $1601.34 b) If the bank charges 3 points on the loan, what is the amount charged for points? $6720 PLEASE ONLY ANSWER C, ALL OTHER QUESTIONS ARE ANSWERED. c) If the bank charges 3 points on the loan, what is the true interest rate?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

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