Determine the comparable interest rate for a $60,000 loan when the quoted information is 10.7% + 0.5 pt + $200. (Round your answer to two decimal places.)
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To determine the comparable interest rate for the $60,000 loan, we need to add up the three components mentioned in the quoted information: the interest rate, the points, and the additional fees. Here's how you can calculate it:
1. Start with the interest rate of 10.7%.
2. Add the points, which is 0.5% of the loan amount. For a $60,000 loan, 0.5% would be (0.5/100) x $60,000 = $300.
3. Add the additional fees, which is $200.
4. Sum up the interest rate, points, and additional fees: 10.7% + $300 + $200 = $X.
To find the comparable interest rate in percentage form, divide the sum by the loan amount and multiply by 100:
$X / $60,000 * 100 = Y%
Round the result to two decimal places to give the final answer.