Ben Thenking wants to borrow $300,000 to buy a house. He plans to live there for exactly 5 years before selling the house, repaying the lender the balance and moving. Ben is considering a 30 year fully amortizing fixed rate mortgage with monthly payments. The banker shows Ben three loan options: (1) A loan with a 5% annual interest rate which requires Ben to pay 2 points up front, (2) the same terms as (1), but the loan principal is increased so Ben can borrow the points, or (3) no points, 5.25% annual interest 30 year fully amortizing fixed rate mortgage with monthly payments. (C) What is the effective interest rate for option #1, assuming the loan remains outstanding for the entire 30 years