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A borrower takes out a 30-year, fully amortizing mortgage loan for $150,000 with an interest rate of 5% plus 2 discount points. What is the

A borrower takes out a 30-year, fully amortizing mortgage loan for $150,000 with an interest rate of 5% plus 2 discount points. What is the effective annual interest rate on the loan if the loan is carried for all 30 years?

a) 5.18% b) 6.0% c) 6.4% d) 5.34

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