Problem
A mortgage company advertises that their 6% APR is an effective annual rate of 6.58% with monthly payments and compounding. Let's assume this is made possible by paying points on amortgage (one pointis 1% of the loan amount). How many points are being paid up front on a $100,000 mortgage loan over 15 years to arrive at an effective interest rate of 6.58%?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.