Mrtramp made a mortgage 5 years ago for 85000 at 825, Ask an Expert

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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?

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Financial Management, Finance

Category:- Financial Management
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