Suppose you have agreed to a bank loan of 120000 for which, Ask an Expert

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Suppose you have agreed to a bank loan of $120,000, for which the bank charges no fees but 2 points. The quoted interest rate is 0.5% per month. You are required to pay only the accumulated interest each month for the next 36 months, at which point you must make a balloon payment of the still-owed $120,000. What is the effective interest rate of this loan?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91539700

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