You are the president at a bank. Competitors are offering rates of 2% on commercial...
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Finance
You are the president at a bank. Competitors are offering rates of 2% on commercial loans (i.e. loans that fully amortize over 25 years). However, you know that your bank needs to earn an annual percentage rate of 3%. What loan origination fee must you charge in order for your APR to equal 3% if you project the borrowers will, on average, prepay at the end of five years?
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