A house price of $100,000 can be financed with two loans below with monthly payments. The total origination cost associated with these two loans is $2,000.

	Loan Amount	Term (years)	Interest Rate
1st loan	$ 80,000	30	5%
2nd loan	$ 10,000	30	7%

Alternatively, the borrower can borrow one loan in the amount of $90,000 with origination cost of $1,500. What should the interest rate be on the $90,000, 30 years loan with monthly payments so that the borrower will be indifferent between these two alternatives?

4.28%

5.28%

6.28%

7.28%