ou want to buy a $140000 home. You plan to pay $14000 as a down payment, and take out a 20 year loan at 4.75% interest for the rest. After 7 years, you decide to pay off the entire loan. a) What is the amount of the payment? $814.24. b) What is the outstanding principal after 7 years? $94,634.01 c) If the bank charges 3.5 points on the loan, what is the amount charged for points? $4,410 PLEASE ONLY SOLVE FOR D OTHER ANSWERS ARE ALREADY SOLVED. d) If the bank charges 3.5 points on the loan, what is the true interest rate?

ou want to buy a $140000 home. You plan to pay $14000 as a down payment, and take out a 20 year loan at 4.75% interest for the rest. After 7 years, you decide to pay off the entire loan. a) What is the amount of the payment? $814.24. b) What is the outstanding principal after 7 years? $94,634.01 c) If the bank charges 3.5 points on the loan, what is the amount charged for points? $4,410 PLEASE ONLY SOLVE FOR D OTHER ANSWERS ARE ALREADY SOLVED. d) If the bank charges 3.5 points on the loan, what is the true interest rate?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 14P

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