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a maturity mismatch problems for these banks the widespread failure of savings and loans in the early 90s was mainly caus the fact that S&Ls debt (savings and deposits) are insured by the government aking excessive risks in commercial lending practices all the above. 17. Calculate the annual percentage rate (APR) for the following loan Loan amount: $166,950; Term: 30 years; Interest rate: 8%, Discount points: 3 a. b. С. d. 8.32% 8.00% 9.16% None of the above Calculate the effective cost (EAR) of the following loan if the borrower will hold the loan for 3 years: Loan amount: $166,950; Term: 30 years Interest rate: 8%; Discount points. 3 18. 8.32% 9.1 6% b. d. None of the above 8.00% c.

May I please have help with these and how to solve them ?

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Answer #1

17)

Function Arguments PMT Rate 18%/12 0.006666667 Nper 30*12 360 Pv 166950 --166950 替() Type - number 1225.019956 Calculates the payment for a loan based on constant payments and a constant interest rate. Fv is the future value, or a cash balance you want to attain after the last payment is made, 0 (zero) if omitted. Formula result = S 1,225.02 Help on this function Cancel

Monthly payment is $1,225.02

Function Arguments RATE Nper 30*12 360 Pmt 1225.02 个ー -1225.02 Pv 166950 0.97 个 161941.5 Type number -0.006936467 Returns the interest rate per period of a loan or an investment. For example, use 6%/4 for quarterly payments at 6% APR. Fv is the future value, or a cash balance you want to attain after the last payment is made. If omitted, uses Fv = 0. Formula result- 0.69% OK Cancel

Hence, APR will 8.32% (0.69%*12)

Hence, Correct option will be A. 8.32%

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