if a lender wants to achieve an APR of approximately 7.0% on a 30-year fully amortizing fixed rate loan for $750,000 with a stated annual interest rate of 6.5%, how many points should the lender charge the borrower? a. 6 b. 3 c. 5 d. 4

if a lender wants to achieve an APR of approximately 7.0% on a 30-year fully amortizing fixed rate loan for $750,000 with a stated annual interest rate of 6.5%, how many points should the lender charge the borrower? a. 6 b. 3 c. 5 d. 4

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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Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

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a. 6

b. 3

c. 5

d. 4

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