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Intro You want to take out a loan for $600,000 for 3 months. All loan options have an APR of 7%, and interest is only

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Intro You want to take out a loan for $600,000 for 3 months. All loan options have an APR of 7%, and interest is only paid at the end of the loan. One option is a simple loan with an APR of 7%. What is the effective annual rate of the loan? Another option is to take out a loan with an origination fee of 1%. What is the effective annual rate of the loan? Another option is to take out a loan with a compensating balance requirement of 1% that reduces the usable loan amount. What is the effective annual rate of the loan

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