Consider the following options available to a mortgage borrower:
|
Loan |
Interest |
Type of |
Discount |
|
|
Option 1 |
$100,000 |
6.75 |
30 year fixed |
none |
|
Option 2 |
$150,000 |
6.25 |
30 year fixed |
1 |
|
Option 3 |
$125,000 |
6 |
30 year fixed |
2 |
What is the effective annual rate for each option?