Problem
You want to borrow $300,000 to start a business. The loan's initial balance is increased by 2% of the loan's face value for loan origination fees, mortgage insurance, credit checks, title searches, etc. Your annual payments are calculated using an initial balance of $306,000, an interest rate of 9%, and a 20-year term. The bank requires you to refinance the loan in 5 years by paying it off with a balloon payment. What interest rate are you paying?
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.