Question: A borrower takes out a $ 2 0 0 , 0 0 0 loan at 4 . 5 % interest with a 3 0 -

A borrower takes out a $200,000 loan at 4.5% interest with a 30-year term and $3,000 in closing costs. If the borrower pays off the loan after 10 years, what is the effective annual cost of borrowing (rounded to two decimal places)?

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