Effective annual interest rate (in percent) on the loan

Reference no: EM13844208

Suppose a borrower receives a 30 year CPM at 5% annually for 30 years for $450,000 but must pay 3 points at origination. Assuming the loan is held to maturity and payments are to be made monthly, which of the following is the effective annual interest rate (in percent) on the loan?

Reference no: EM13844208

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