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olya-2409 [2.1K]
2 years ago
8

If a lender agrees to an $80,000 loan at 9% for 15 years with 2 loan discount points, what amount will be charged at closing for

the points
Business
1 answer:
White raven [17]2 years ago
6 0

points charged at closing will be $80,000 × 0.02 (2 points equal 2%) = $1,600.

Points, also called discount points, lower interest rates in exchange for prepayment. Lenders lower your closing costs in exchange for accepting higher interest rates. These terms may be used to mean something else. "Point" is a term that mortgage lenders have used for many years.

Mortgage points (sometimes called discount points) are fees paid to lower interest rates on home purchases or refinancing. Discount points cost 1% of your mortgage amount. For example, if you take a $ 100,000 mortgage, one point costs $ 1,000.

Learn more about loan discount points here:brainly.com/question/2764956

#SPJ1

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Answer:

No,  as the net present value comes in negative

Explanation:

As we know that

Net present value = Present value of cash inflows - Initial investment

where,

Present value os $163,000

And, the initial investment is $180,000

Now placing these values to the above formula

So, the net present value is

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Therefore the company should not accept the project as net present value is in negative that is -$17,000

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The mode is 50 the most frequent
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Hich pricing strategy involves setting a high price for an exclusive, high-end product?
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Benny's, a leading producer of ketchups and jams, experienced a rapid decline in sales in the early 1990s. To regain its market
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Bren Company sold a car for $17,100. The cost of the car was $37,000 and the depreciation expense was recorded at 10% for five a
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The loss on the disposal of the car is $-16,200.

The first step is to determine the total depreciation on the car.

Depreciation expense = percentage depreciation x cost of the asset

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The second step is to determine the book value of the car = cost of the car - depreciation

$37,000 - $3700 = $33,300.

The book value is greater than the selling price of the car, so there was a loss on the sale. The third step is to determine the gain on the sale.

Loss = $17,100 - $33,300  = $-16,200

A similar question was answered here: brainly.com/question/24357323

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