Home loans typically involve points, which are fees charged by the lender. Each point charged means that the borrower must pay 1% of the loan amount as a fee. For example, if the loan is for $190,000 and 2 points are charged, the loan repayment schedule is calculated on a $190,000 loan but the net amount the borrower receives is only $186,200. What is the effective annual interest rate charged on such a loan assuming loan repayment occurs over 252 months? Assume the interest rate is 1.00% per month. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Effective annual interest rate %

ReferenceseBook & Resources WorksheetDifficulty: IntermediateLearning Objective: 05-03