You are looking at a one-year loan of $20,000. The interest rate is quoted as 10 percent plus 2 points. A point on a loan is simply 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay 2 points to the lender up front and repay the loan later with 10 percent interest. What rate would you actually be paying here? Multiple Choice 7.80% 10.00% 13.47% 11.02% 12.24%