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5.20. Your local lender offers you a fixed-rate mortgage with the following terms: $165,000 at...

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5.20. Your local lender offers you a fixed-rate mortgage with the following terms: $165,000 at 6.25% for 30 years, monthly payments. The lender will charge you two discount points and the loan has a 4% prepayment penalty. A. What is the annual percentage rate (APR) of the loan? B. What is the effective cost of the loan if it is repaid at the end of year 6? C. How many points are required to yield an APR of 7.125%

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