A 20% down payment is used to buy a house for $125,000. $800.00 is deducted from the first month's payment as interest. The interest rate for this loan is 9.6%.
A percentage of the principal, or the amount loaned, is what a lender interest rate charges a borrower as interest. The annual percentage down payment rate, or APR, is the usual unit used to express the interest rate on a loan (APR).
The amount earned from a savings account or certificate of deposit at a bank or credit union may also be subject to interest rates (CD). Interest on interest rate these bank accounts is calculated as an annual percentage yield (APY).
The borrower is essentially charged interest for the usage of the asset. Cash, consumer goods, vehicles, and real estate are all examples of lent down payment assets. An interest rate might be viewed as the "cost of money" as a result.
Learn more about interest rate here
https://brainly.com/question/13324776
#SPJ4
