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Calculate the effective cost (or effective annual rate, EAR) of the following loan if it is completely paid off at the end of year 5:

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Calculate the effective cost (or effective annual rate, EAR) of the following loan if it is completely paid off at the end of year 5: Initial loan amount: $100,000; Term: 30 years; Interest rate: 7.5%; Monthly Payment; The origination fee is $1250 plus 1.25 discount points. The lender will also charge 5% prepayment penalty if paid off before maturity

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