2020 2021 Direct Parent Plus Loan Application Tutorial
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You are looking at a one-year loan of 10,000. The interest rate is quoted as 9 percent plus three points. A point on a loan is simply 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 Iender up front and repay the loan later with 9 percent interest. What rate would you actually be paying here? | Numerade
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