What is effective interest rate

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Reference no: EM132038803

A borrower is offered a mortgage loan for $100,000 with an interest rate of 10% and a 30-year amortization period with monthly payments. The origination fee is 1% of the loan and the lender charges two discount points.

What is the effective interest rate? (Show work for no calculator & work with BAII Plus Calculator)

Reference no: EM132038803

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