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Question 27 Assume you borrow a PLAM of $120,000 for 30 years. Assume the real interest rate is 5% and inflation is expected to be

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Question 27 Assume you borrow a PLAM of $120,000 for 30 years. Assume the real interest rate is 5% and inflation is expected to be 3% every year, if the lender also charges total 5 points upfront, what is the effective annual rate on this loan if you pay off at the end of year 22 11.23% 9.57% 8.06 1062%

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