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1. John wants to buy a property for $110,000 and wants an 80% loan. A lender indicates that a fully amortizing loan can be obtained

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1. John wants to buy a property for $110,000 and wants an 80% loan. A lender indicates that a fully amortizing loan can be obtained for 30 years with monthly payments, at 8 percent interest; however, a loan origination fee of $1,000 at the closing will be necessary for John to obtain the loan. a. What is the net amount that the borrower will actually receive? b. What is the effective interest rate for the borrower, assuming that the mortgage is paid off after the full term of 30 years? c. If John pays off the loan after 6 years, what is the effective interest rate? Why is it different from the effective interest rate in part b above

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