S$06-62$ Calculating EAR with Points $[$LO$4]$

You are looking at a one$-$year loan of $\backslash (\backslash$$ $10,000\backslash ).$ The interest rate is quoted as $9\mathrm{.}7$ percent plus $2$ points. A point on a loan is $1$ 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 $2$ points to the lender up front and repay the loan later with $9\mathrm{.}7$ percent interest.

What rate would you actually be paying here?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$