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A lender's annual return on a $100,000 wraparound loan drawn at 10% interest-only for five years, subject to an existing $65,000 loan at 7.5% interest is

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Based on the data given, the interest is 14.64%.
You have to include payments received every month, service fees, charge-offs, and recoveries. This only measures the return of investment in cash. The estimates are not guaranteed and may vary from actual results.
User Wooters
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