If a borrower borrows $3,000 at 6%, single payment in one year. If the loan has...
If a borrower borrows $3,000 at 6%, single payment in one year. If the loan has a $100 origination fee on the loan, what is the total amount they would have to pay? What is the annual percent rate then?
Homework Answers
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| Please find below the answer | |
| Statementshowing Computations | |
| Paticulars | Amount |
| Amount borrowed | 3,000.00 |
| Origination fee | (100.00) |
| Amount received on borrowing | 2,900.00 |
| Interest on Loan = 3000 *6% | 180.00 |
| Total Amount to be paid = 180+ 3000 | 3,180.00 |
| Annual percent rate = (3180 - 2900)/3180 | 8.81% |
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