Suppose you take a 25year mortgage of 240000 The annual inte

Suppose you take a 25-year mortgage of $240000. The annual interest rate is 4%, and the annual APR is 4.93%. Compounding done on yearly basis. Loan payments are made annually. Calculate the amortized fees and expenses for this loan (in dollars, provide your answer with $1 precision).

Solution

Loan Value $240000 Interest 240000*4% $9600 APR 4.93% Years 25 Using Calculator Present Val $208320 Amortised Fees         31,680.00 240000-208320 Expenses for the Loan $9600 Interest