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Given the following information, calculate the Effective Borrowing Cost (EBC). Loan amount: $200,000 Term: 30 years Interest rate: 6% Payment: $1,199.10 Discount points: 2 point

Given the following information, calculate the Effective Borrowing Cost (EBC). Loan amount: $200,000 Term: 30 years Interest rate: 6% Payment: $1,199.10 Discount points: 2 point Origination fee: $5,000

Assume the loan is held until the end of year 10.

answer choices 6.7% 7.0% 7.4% 6.2%

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