For the loan of problem 4, assume that my lender wanted an up - front fee of

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For the loan of problem 4, assume that my lender wanted an up - front fee of $250 to set up the loan. I want the lender to fold this fee into the loan. First, repeat problem 4 showing this up - front fee as additional principal. Second, return the loan to the original principal but show the effective interest rate due to the higher payments.

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