A home mortgage with monthly payments for 30 years is available at 6% interest. The home you are buying cost $120,000, and you have saved $12,000 to meet the requirement for a 10% down payment. The lender charges "points" of 2% of the loan value as a loan origination and processing fee. The is fee is added to the initial balance of the loan.

d)If you transferred in 3 years and pay off the loan, what is your effective annual interest rate?