5. You take out a mortgage loan from First Bank of Terlingua with the following characteristics:

• compounding period is monthly
• loan is for $200,000
• APR = 3.94%
• initial maturity is 30 years
• this mortgage loan has no points

Now suppose that First Bank allows you to accelerate your loan payments by paying an additional $100 each month. (We assume that the bank does not charge a fee for exercising this option.) When we take the acceleration into account, what is your effective annual rate?

Do not round at intermediate steps in your calculation. Report the rate in percent to three decimal places. Do not type the % symbol.