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You are looking at a msyear loan of $16.50!]. The interest rate Is minted as T} percent pins Mo points. Apoint on a loan is simply 1 percent {one penmntags point} of the loan amount. Quotes similar to this one arevery DDI’I’H’I’IDI’I with home mortgages. The interest rate quotation in this example requires the borrower topay two points to the lender up frent end repay the bean later with 17′ percent interest. What rate Irmr-oulrl you actually be paying here? [Do not round Intermediate calculations and enter youranew-er as a percent rounded 11: 2 decimal please, e.§., 32.15.] i Tit? What is the EAR for a one-«yew teen with a quoted interest rate of 111.? percent plus two poinm? [Do notround intermediate calculations and enter your anew a: a percent rounded to 2 decimal places.e.u.. 31.15.] M? 1—]?1i Is your ansfler afieeted by the loan amount? H’N l_ _ ”QC‘ .‘rias
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