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A house is for sale for $482,000. You have a choice of two 20-year mortgage loans with monthly payments: (1) if you finance 90% of

A house is for sale for $482,000. You have a choice of two 20-year mortgage loans with monthly payments: (1) if you finance 90% of the price, you can obtain a loan with a 6% rate of interest or (2) if you finance 80% of the price, you can obtain a loan with a 5% rate of interest. What is the effective annual rate of interest on the additional amount borrowed on the first loan?

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