Consider the following options available to a mortgage borrower:
                     Loan Amount   Interest Rate (%)    Type of Mortgage   Discount Points
Option 1      $150,000                6.35                       30-year fixed                  1
Option 2       $120,000                6.42                      30-year fixed                  2
Option 3      $145,000                 6.05                       30-year fixed                 3
What is the effective annual rate for each option?