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You are looking at a oneyear loan of 14500 The interest .pdf

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This document describes a one-year loan of $14,500 with an interest rate of 8.9% plus three points. A point is 1% of the loan amount, so three points equals 3% of $14,500 or $435. Therefore, the borrower must pay $435 up front plus repay the $14,500 loan at 8.9% interest over one year.

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You are looking at a one-year loan of $14,500. The interest rate is quoted as 8.9 percent plus three points. A point on a loan is 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay three points to the lender up front and repay the loan later with 8.9 percent interest.

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You are looking at a oneyear loan of 14500 The interest .pdf

  • 1. You are looking at a one-year loan of $14,500. The interest rate is quoted as 8.9 percent plus three points. A point on a loan is 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay three points to the lender up front and repay the loan later with 8.9 percent interest.