Determine the comparable interest rate for a $50,000 loan when the quoted information is 11.4% + 0.5 pt + $300.
The amount actually received is 50,000-300 - 250 = $49,450. Interest paid starts out at 11.4% of 50,000 per year, or $57,000.
The true interest rate (without points or fees)is 57,000/49,450 = 11.53%