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What is the effective cost of the two loans in percent

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Jade Mara needs to find the effective cost of the following two loans: (1) a $200,000 loan at 12 percent for 20 years and (2) a $50,000 loan at 14 percent for 20 years. The loans require monthly payments and are fully amortizing. What is the effective (annual) cost of the two loans in percent?

Reference no: EM131554421

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