Question: Assuming all APRs equal, the effective interest rate on a loan is highest when: (A) The loan has no points and a 30-year maturity and

Assuming all APRs equal, the effective interest rate on a loan is highest when:

(A) The loan has no points and a 30-year maturity and is prepaid in five years

(B) The loan has no points and is prepaid at maturity

(C) Points are charged and the loan has a 30-year maturity but is prepaid in five years

(D) Points are charged and the loan is paid off at maturity in 30 years

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