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You need a 30-year fixed-rate mortgage for $100,000. Bank A offers 7.5% interest with 3 discount points. Assume that you intend to prepay the mortgage

You need a 30-year fixed-rate mortgage for $100,000. Bank A offers 7.5% interest with 3 discount points. Assume that you intend to prepay the mortgage at the end of year 5. Your outstanding loan balance at the end of year 5 is $94,617. What will be the effective interest rate of this mortgage?

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