Use the following information to answer Questions 52-55: Ronald wants to buy a property for $105,000 and wants an 80 per

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Use the following information to answer Questions 52-55:
Ronald wants to buy a property for $105,000 and wants an 80
percent loan for $84,000. A lender indicates that a fully
amortizing loan can be obtained for 30 years at 8% interest;
however a loan fee of $3,500 will also be necessary for Ronald to
get the loan. How much will the lender actually disburse?
A. $84,000 B. $105,000 C. $101.500 D. $80,500
QUESTION 53 What is the APR for the borrower assuming the loan
is paid off in the full term ? A. 8.45% B. 9.06% C. 7.04% D. 8.00%
2
QUESTION 54 If the loan is paid off in five (5) years, what is
the effective interest rate ? A. 8.45% B. 8.00% C. 9.06% D.
7.55%
QUESTION 55 Assume that the lender imposes a 2% prepayment
penalty on the outstanding balance of the loan if repaid within (8)
eight years of closing. If the loan is repaid after (5) five years
with the prepayment penalty what is the effective rate of the
loan?