• You have a choice of two fully amortizing 20-year mortgage loans with monthly payments: 
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• (1) a $250,000 loan with a 3.5% annual rate of interest or
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• (2) a $225,000 loan with a 3% annual rate of interest.
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• What is the effective annual rate of interest on the additional $25,000 borrowed on the first loan?

Answer rating: 100% (QA)

To calculate the effective annual rate of interest on the additional 25000 borrowed on the first loa... View the full answer