Consider a $150,000 loan with an annual interest rate of 6.5 percent and a 30-year term. Discount

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Consider a $150,000 loan with an annual interest rate of 6.5 percent and a 30-year term. Discount points are equal to 2 percent. All other up-front financing costs to be paid by the borrower total $3,000. Compute the monthly payment and the loan balance at the end of months 1-6. What is the effective borrowing cost (EBC) assuming the loan remains outstanding to maturity?

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