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You borrowed a home loan of $1015632 from Monash Bank for 25 years at a 9% nominal annual interest rate, compounded monthly. Monash bank charged
You borrowed a home loan of $1015632 from Monash Bank for 25 years at a 9% nominal annual interest rate, compounded monthly. Monash bank charged 3.5% points on any home loans on the day of issuing. If you receive an extra-large income increase after 15 years of payments and want to pay off the rest of this debt at once immediately. What is the annual effective cost of this borrowing?
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