A house is for sale for $300,000. You have a choice of two 30-year mortgage...
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A house is for sale for $300,000. You have a choice of two 30-year mortgage loans with monthly payments: (1) if you make a down payment of $30,000, you can obtain a loan with a 6% rate of interest or (2) if you make a down payment of $60,000, you can obtain a loan with a 4% rate of interest. What is the effective annual rate of interest on the additional $30,000 borrowed on the first loan?
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