You buy a home for $182,251 and put $13,298 down. You borrow the remainder. The mortgage company also charges a 3% loan and closing fee which you must also borrow. The interest rate is 7.5% for 30 years. What is the actual APY (the actual interest rate they will have paid)? 10.6% 11% 11.5% 10.5%
You buy a home for $182,251 and put $13,298 down. You borrow the remainder. The mortgage company also charges a 3% loan and closing fee which you must also borrow. The interest rate is 7.5% for 30 years. What is the actual APY (the actual interest rate they will have paid)? 10.6% 11% 11.5% 10.5%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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You buy a home for $182,251 and put $13,298 down. You borrow the remainder. The mortgage company also charges a 3% loan and closing fee which you must also borrow. The interest rate is 7.5% for 30 years. What is the actual APY (the actual interest rate they will have paid)?
| 10.6% |
| 11% |
| 11.5% |
| 10.5% |
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