Respuesta :
Answer:
ARP = 13.2184 %
Prepaid interest = $3,057.66
Explanation:
The ARP stands for annual percentage rate. It is defined as the amount of interest that one has to pay annually for the total mortgage loan he or she takes. In the question, the ARP will be 13.2184 % for a loan amount of $127,000 at the rate of 12.98% that will be amortized in 57 years with 0.13 points.
The prepaid interest is the interest amount the borrower pays for the loan he takes before the first scheduled of the debt repayment. In the question, the prepaid interest amount is $3,057.66 for the loan amount $524,000 to be amortized in 40 years with 0.58 points and at 5.33%.
The credit facility alludes to a type of financial instrument in which an amount of money is granted to another party in exchange for the valuation or principal quantity being repaid in the future.
In so many circumstances, the creditor will add interest to the original amount, which the borrower will be liable to repay in addition to the principal amount.
The answers are:
The percentage of ARP is 13.2184 %
The amount of Prepaid interest is $3,057.66
The annual percentage rate is the amount of interest that a person must pay each year on the total mortgage loan that he or she takes out. The ARP will be 13.2184 percent for a loan amount of $127,000 at a rate of 12.98 percent, amortized in 57 years with 0.13 charges in the case in question.
The prepayment interest rate is the number of interest costs by the debtor for the loan he takes out before the first specified repayment date. The prepaid interest amount in the question is $3,057.66 for a loan of $524,000 to be amortized over 40 years at 0.58 points and 5.33 percent.
To know more about the calculation of the interest and the percent rate, refer to the link below:
https://brainly.com/question/8608496
