What would be the effective annual rate for mortgage rate

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Reference no: EM132861526

In October 2019, the average rent for a two-bedroom apartment in Ottawa was approximately $1,720 per month. Whereas the average house price was approximately $465,000. Assume for all payments that they are made at the end of each period.

Problem 1: Based on the 3 percent mortgage rate (compounded semi-annually), what would be the Effective Annual Rate for this mortgage rate?

Option 1: 2.764%

Option 2: 3.235%

Option 3: 3.023%

Option 4: 2.558%

Option 5: None of the Above

Reference no: EM132861526

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