Question: 2 . You borrow $ 8 6 5 , 0 0 0 at 7 . 2 5 % amortized over 2 5 years with monthly

2. You borrow $865,000 at 7.25% amortized over 25 years with monthly payments. You pay 3 points to obtain the loan. Answer the following:
a. APR _________________________
b. Effective cost of borrowing if paid off at EOY 5_______________________

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