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A borrower is offered a mortgage loan for $120,000 with an interest rate of 6% and a 30-year amortization period with monthly payments. The origination

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A borrower is offered a mortgage loan for $120,000 with an interest rate of 6% and a 30-year amortization period with monthly payments. The origination fee is 1% of the loan and the lender charges one discount points. What is the effective interest rate? 1) 7.21% O2) 10.37% 3) 6.19% O4) 6.92% 5) 10.24%

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