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Question: A person was considering buying a house priced at $210,000. A mortgage company claimed the interest rate for the 20-year loan is 4.00%. The company also estimated that the points and Appraisal, Credit Report, Processing, Document Preparation, Administration, Underwriting, Flood Certificate, Tax Service, Wire Transfer, and other fees would be $12,000 in total.
What is the APR of the loan?
0.33%
4.00%
4.07%
4.81%
4.91%
None of above
could you please show me how to resolve this problem?
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