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Effective interest rates are: 1) increased by the charging of discount points. 2) decreased by the charging of discount points. 3) unaffected by the charging

Effective interest rates are:

1) increased by the charging of discount points.
2) decreased by the charging of discount points.
3) unaffected by the charging of discount points.
4) may be increased or decreased by discount points, depending upon whether the points are currently deductible for income tax purposes.

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