What rate of return would mrtramp receive by prepaying the


Mr.Tramp made a mortgage 5 years ago for $85000 at 8.25% interest and a 15 year term. Rates have now risen to 10% for an equivalent loan. Mr.Tramp's lender is willing to discount the loan by $2000 if he will prepay the loan. What rate of return would Mr.Tramp receive by prepaying the loan?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What rate of return would mrtramp receive by prepaying the
Reference No:- TGS02299808

Expected delivery within 24 Hours