You want to buy a $170000 home. You plan to pay $34000 as a down payment, and take out a 20 year loan at 3.75% interest for the rest. a) What is the amount of the payment? $ b) If the bank charges 2 points on the loan, what is the amount charged for points? $ c) If the bank charges 2 points on the loan, what is the true interest rate? $ TVM SOLVER
You want to buy a $170000 home. You plan to pay $34000 as a down payment, and take out a 20 year loan at 3.75% interest for the rest. a) What is the amount of the payment? $ b) If the bank charges 2 points on the loan, what is the amount charged for points? $ c) If the bank charges 2 points on the loan, what is the true interest rate? $ TVM SOLVER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 15P
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You want to buy a $170000 home. You plan to pay $34000 as a down payment, and take out a 20 year loan at 3.75% interest for the rest.
a) What is the amount of the payment?
$
b) If the bank charges 2 points on the loan, what is the amount charged for points?
$
c) If the bank charges 2 points on the loan, what is the true interest rate?
$
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