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You borrowed a home loan of $1681704 from Monash Bank for 25 years at a 10% nominal annual interest rate, compounded monthly. Monash bank charged

You borrowed a home loan of $1681704 from Monash Bank for 25 years at a 10% nominal annual interest rate, compounded monthly.  Monash bank charged you $5000 as loan origination fees. 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?  (2 marks)

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