Question: A borrower is faced with choosing between two loans. Loan A is available for $ 7 9 , 0 0 0 at 6 percent interest

A borrower is faced with choosing between two loans. Loan A is available for $79,000 at 6 percent interest for 30 years, with 6 points to be included in closing costs. Loan B would be made for the same amount, but for 7 percent interest for 30 years, with 2 points to be included in the closing costs. Both loans will be fully amortizing. If the loan is repaid after 20 years, what is the effective interest rate for Loan A and Loan B? Show me how to solve in excel.

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