What is the effective annual rate on this loan

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Reference no: EM131021551

You have just purchased a new warehouse. To finance the purchase, you arranged for a 30-year mortgage loan for 65 percent of the $2.5 million purchase price. The monthly payment on this loan will be $10,400. What is the effective annual rate on this loan?

6.82 percent

6.25 percent

6.46 percent

7.01 percent

7.27 percent

Reference no: EM131021551

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