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Problem 1: You have just purchased a home by borrowing $400,000$400,000 for 30-years at a fixed APR of 3.87%. The loan payments are monthly and interest is compounded monthly. What is the periodic interest rate? (I.e., what is the monthly interest rate?)
Option 1: 0.0129
Option 2: 0.0032
Option 3: 0.0013
Option 4: 0.0394
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