Question $16(5$ points$)$

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

$$ Points are charged and the loan has a $20-$year maturity but is prepaid in six years with a prepayment penalty

Points are charged and the loan is paid off at maturity in $20$ years

The loan has no points and a $20-$year maturity and is prepaid in six years

$$ The loan he points and is prepaid at maturity