Valley Lending Company makes a loan of $200,000 at a 6% annual interest rate for 25 years with monthly payments. The borrower must pay a loan origination fee of $3,000 to obtain the loan.

What will be the monthly payment?

Group of answer choices

$1,223.63

$1,269.27

$1,288.60

$1,181.11

$1,199.10

Valley Lending Company makes a loan of $200,000 at a 6% annual interest rate for 25 years with monthly payments. The borrower must pay a loan origination fee of $3,000 to obtain the loan.

What is the annual percentage rate (APR)? In other words, what is the effective cost of borrowing, assuming the borrower does not prepay the loan?

Group of answer choices

6.16%

5.84%

6.78%

6.00%

7.09%