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Your local S&L provides you with the following information concerning a possible 1- year single repayment loan. You pay 2 points (1 point = 1%)

Your local S&L provides you with the following information concerning a possible 1-

year single repayment loan. You pay 2 points (1 point = 1%) up front of the amount

borrowed, and the interest rate you are charged is 10%. If you borrow $4,000 for one

year on these terms, at what rate are you actually borrowing

Please show all logic/formulas - thank you!

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