The bank also requires you to pay a 3 loan origination fee


You decide to purchase a building for $30,000 by paying $5,000 down and assuming a mortgage of $25,000. The bank offers you a 15 year mortgage requiring annual end of year payments of $3,188 each. The bank also requires you to pay a 3% loan origination fee, which will reduce the effective amount the bank lends you. Compute the annual percentage rate of interest on this loan.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: The bank also requires you to pay a 3 loan origination fee
Reference No:- TGS0633644

Expected delivery within 24 Hours