Given the following information on a MPT, what is the servicing fee payment in year 3? (Round your answer to the nearest dollar) (Note: You can perform this calculation with the spreadsheet or by completing it iteratively.) • 10 year FRM, fully amortizing, annual payments. • No prepayment or default • 100 loans in the pool • Average starting balance of $350,000/loan • Mortgage rate 5% • Servicing fee of 0.5% of starting outstanding pool balance

Given the following information on a MPT, what is the servicing fee payment in year 3? (Round your answer to the nearest dollar) (Note: You can perform this calculation with the spreadsheet or by completing it iteratively.) • 10 year FRM, fully amortizing, annual payments. • No prepayment or default • 100 loans in the pool • Average starting balance of $350,000/loan • Mortgage rate 5% • Servicing fee of 0.5% of starting outstanding pool balance

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...

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Calculating interest and APR of installment loan. Assuming that interest is the only finance charge, how much interest would be paid on a 5,000 installment loan to be repaid in 36 monthly installments of 166.10? What is the APR on this loan?
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