In the mortgage example, suppose that you must pay an inspection fee of $1000, a loan initiation fee of $1000, and 2 points, that is, 2% of the nominal loan of $200,000. Effectively, then, you are receiving only $194,000 from the lending institution. Use a spreadsheet to calculate the annual interest rate ryou will now be paying, given the agreed upon monthly payments of $1667.85.