Question: Given the following information, calculate the effective borrowing cost (EBC): loan amount: $175,000; term: 30 years; interest rate: 7%; payment: $1,164.28; discount points: 1 point;

Given the following information, calculate the effective borrowing cost (EBC): loan amount: $175,000; term: 30 years; interest rate: 7%; payment: $1,164.28; discount points: 1 point; origination fee: $3,250. Assume the loan is held until the end of year 10.

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