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You decide to purchase a building for $30,000 by paying $5,000 down and assuming a mortgage of $25,000. The bank offers you a 15 year
You decide to purchase a building for $30,000 by paying $5,000 down and assuming a mortgage of $25,000. The bank offers you a 15 year mortgage requiring annual end of year payments of $3,188 each. The bank also requires you to pay a 3% loan origination fee, which will reduce the effective amount the bank lends you. Compute the annual percentage rate of interest on this loan.
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