Question

Please calculate the APR for a loan with following condition: $30,000 loan with the interest rate of 5% compounded annually and repayment period of 7 years. With the costs deducted at the time of taking the loan (present time) including: 2 points and loan originating fee of 100 dollars. Do not write "%" in your answer, write your answer like 1.23, 4.56, etc.

          Please calculate the APR for a loan with following condition:
$30,000 loan with the interest rate of 5% compounded
annually and repayment period of 7 years. With the costs
deducted at the time of taking the loan (present time)
including: 2 points and loan originating fee of 100 dollars.
Do not write "%" in your answer, write your answer like 1.23,
4.56, etc.

Please calculate the APR for a loan with following condition:
30,000 loan with the interest rate of 5% compounded
annually and repayment period of 7 years. With the costs
deducted at the time of taking the loan (present time)
including: 2 points and loan originating fee of 100 dollars.
Do not write "%" in your answer, write your answer like 1.23,
4.56, etc.

Added by Maurice P.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Gregory Higby

04/21/2023

Step 1

In this case, the loan amount is $30,000, the interest rate is 5%, and there are 2 points and a loan originating fee of $100. The points are a percentage of the loan amount that is paid upfront. Each point is equal to 1% of the loan amount. So, in this case, 2 Show more…

Show all steps

Thanks for your feedback!

Please calculate the APR for a loan with following condition $30.000 loan with the interest rate of 5% compounded annually and repayment period of 7 years.With the costs deducted at the time of taking the loan (present time) including:2 points and loan originating fee of 100 dollars. Do not write "%" in your answer, write your answer like 1.23, 4.56,etc.