needhelplease
New member
- Joined
- Jan 31, 2017
- Messages
- 1
Hi. I have a word problem and i am not sure where to post because i am new. But the question is this.
A borrower on January 1st funded their loan for $258,039.34. The rate of interest was 3.50% with an "interest only" amortization. On January 14th, just 14 days later the borrower repaid the loan in full, with a $65 fee charged and collected as an early payment penalty. Interest on this Note will be computed on a 365/360 basis; that is, by applying the ratio of the interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding
Q: What is the actual all-in yield of return that was earned on the loan?
Help :/ i know its more than 3.50%!
A borrower on January 1st funded their loan for $258,039.34. The rate of interest was 3.50% with an "interest only" amortization. On January 14th, just 14 days later the borrower repaid the loan in full, with a $65 fee charged and collected as an early payment penalty. Interest on this Note will be computed on a 365/360 basis; that is, by applying the ratio of the interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding
Q: What is the actual all-in yield of return that was earned on the loan?
Help :/ i know its more than 3.50%!
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