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Question
A house is for sale for $250,000. You have a choice of two 20-year mortgage loans with monthly payments: (1) if you make a down payment of $25,000, you can obtain a loan with a 6% rate of interest or (2) if you make a down payment of $50,000, you can obtain a loan with a 5% rate of interest. What is the effective annual rate of interest on the additional $25,000 borrowed on the first loan?
A) 1.00%
B) 6.00%
C) 12.95%
D) 18.67%
Answer
This answer is hidden. It contains 19 characters.
Related questions
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