Question

In: Finance

Points are also known as: A.Third party charges B. Reduction in payment amount C. Loan discount...

Points are also known as:

A.Third party charges

B. Reduction in payment amount

C. Loan discount fees

D. Reduction in mortgage yield

Solutions

Expert Solution

Option C is correct

Loan Discount Fees

Discount Points are discount on interest rates in a loan

jeff jeffy answered 3 years ago
Next > < Previous

Related Solutions

The C statistic is also known as the response criterion. This is the amount of evidence...
The C statistic is also known as the response criterion. This is the amount of evidence an individual requires to make a target-present response. What does a negative C statistic mean? What does a positive C statistic mean? What factors can influence someone’s response criterion? single detection lab Results The table below lists several detection statistics for different numbers of noise dots. The most important statistic is d'. It gives a measure of your ability to discriminate displays in which...
Explain the differences between a pure discount loan, an interest-only loan, and a level-payment amortized loan....
Explain the differences between a pure discount loan, an interest-only loan, and a level-payment amortized loan. Explain interest rate risk. What are the three elements in every time value of money calculation?
[SHORT] In Excel: Amount of the loan: $500,000 Length of the loan: 30 years Payment: Equal...
[SHORT] In Excel: Amount of the loan: $500,000 Length of the loan: 30 years Payment: Equal annual payment Interest rate: Annual interest rate is 3.0% in year 1, and increases at 0.1% increment every year after that. So Year 2's rate will be 3.1%, Year 3's rate will be 3.2%, etc. Create a year-by-year table with Year, Beginning balance, PMT, interest, principal, and ending balance. Make sure to create a column to reflect floating interest rates. Make sure to utilize...
Goal-seek Loan Amortization Schedule Amount of the loan: $500,000 Length of the loan: 30 years Payment:...
Goal-seek Loan Amortization Schedule Amount of the loan: $500,000 Length of the loan: 30 years Payment: Equal annual payment Interest rate: Annual interest rate is 3.0% in year 1, and increases 0.1% in year 2, etc. In other words, the annual interest rates will be 3.0%, 3.1%, 3.2%,…. M1 Assignment - Goal-seek Loan Amortization Schedule Rubric Successfully created year-by-year table with Year, Beginning balance, PMT, interest, principal, ending balance 3 pts Successfully created a column to reflect floating interest rates...
A $45,000 direct reduction loan is financed at 9.25% per annum. The monthly payment is $385....
A $45,000 direct reduction loan is financed at 9.25% per annum. The monthly payment is $385. What is the total number of monthly payments to pay off the loan? What are the amounts paid toward interest and principal in the 14th period? What is the remaining principal balance after the 14th payment has been made?
19. If r = 15% and n = 5, the payment on a $5000 discount loan > $10,000.
True or False19. If r = 15% and n = 5, the payment on a $5000 discount loan > $10,000.20. If r = 6% and n = 6%, the FVIFA > 7.
This question illustrates what is known as discount interest. Imagine you are discussing a loan with...
This question illustrates what is known as discount interest. Imagine you are discussing a loan with a somewhat unscrupulous lender. You want to borrow $30,000 for one year. The interest rate is 19.75 percent. You and the lender agree that the interest on the loan will be .1975 × $30,000 = $5,925. So, the lender deducts this interest amount from the loan up front and gives you $24,075. In this case, we say that the discount is $5,925. What is...
This question illustrates what is known as discount interest. Imagine you are discussing a loan with...
This question illustrates what is known as discount interest. Imagine you are discussing a loan with a somewhat unscrupulous lender. You want to borrow $18,000 for one year. The interest rate is 16.75 percent. You and the lender agree that the interest on the loan will be .1675 × $18,000 = $3,015. So, the lender deducts this interest amount from the loan up front and gives you $14,985. In this case, we say that the discount is $3,015. What is...
If the interest rate on the loan is 7%, what is the amount of principal in the second payment?
You borrow $12,000 today. The loan will be repaid in annual payments over 10 years. If the interest rate on the loan is 7%, what is the amount of principal in the second payment?
2. A What is the monthly payment amount on a $100,000 home loan if the rate...
2. A What is the monthly payment amount on a $100,000 home loan if the rate is 8.0% APR, and the loan is made for a 15-year period? B A four-year investment requires annual deposits of $300 at the beginning of each year. The deposits earn 6% per year. What is the investment’s future value? Remember, the deposits are made at the beginning of each year (annuity due).
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT