Loan 1: $200,000 at 4.5% for 30 years, monthly payments, and no origination cost. APR = 4.80% Loan 2: $200,000 at 4.25% for 30 years, monthly payments, and no origination cost. What is the discount point charged on Loan 1 assuming there is no cost associated with the origination? How many points must be charged on the 2nd loan to equalize the APR on the two loans? Please show how to solve using an excel spreadsheet

Loan 1: $200,000 at 4.5% for 30 years, monthly payments, and no origination cost. APR = 4.80% Loan 2: $200,000 at 4.25% for 30 years, monthly payments, and no origination cost. What is the discount point charged on Loan 1 assuming there is no cost associated with the origination? How many points must be charged on the 2nd loan to equalize the APR on the two loans? Please show how to solve using an excel spreadsheet

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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