What annual percentage rate (APR) of interest is the lender charging on a $242,000 fixed-rate,...
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What annual percentage rate (APR) of interest is the lender charging on a $242,000 fixed-rate, fixed-payment home mortgage loan with payments of $1,870.09 every month for 30 years? What is the effective annual rate (EAR) of interest? What is the annual cost of borrowing if the lender charges two discount points as a condition of granting the loan? (It is sensible to compute the monthly r with Excel or your financial calculators I/Y function key.)
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