Question: P6-62 Calculating EAR with Points [LO4] You are looking at a one-year loan of $10,000. The interest rate is quoted as 11 percent plus 4

P6-62 Calculating EAR with Points [LO4] You are looking at a one-year loan of $10,000. The interest rate is quoted as 11 percent plus 4 points. A point on a loan is simply 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay 4 points to the lender up front and repay the loan later with 11 percent interest. What rate would you actually be paying here? Multiple Choice 17.19% Oplications Quiz 17.19% 15.63% 6.56% 11.00% 14.06%

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