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TBTF Bank makes a 1 3 year interest only loan to AFC Inc of $ 4 , 2 0 0 , 0 0 0 .

TBTF Bank makes a 13 year interest only loan to AFC Inc of $4,200,000.00. The interest rate on the loan is i(26)=9.625%, and the payments will be made monthly. TBTF reinvests the payments at an interest rate of i(2)=7.625%. At maturity, what is TBTF Bank's annual ROI over the lifetime of the loan? (AFC does not default.)

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