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A couple takes out a fully amortizing fixed rate 30-year loan for $510,000. The couple makes monthly payments and the annual interest rate on the

A couple takes out a fully amortizing fixed rate 30-year loan for $510,000. The couple makes monthly payments and the annual interest rate on the loan is 4.0%. The couple also pays 2.0 points in up-front fees to obtain the loan.

(a) Calculate the loans APR (b) Assuming a holding period of 8 years, calculate the loans EBC

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