What is the effective annual rate​ (EAR) of a mortgage that is advertised at ​% ​(APR) over the next twenty years and paid with ​payments? What is the effective annual rate​ (EAR) of the mortgage at 10.5​% APR with monthly ​payments?

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.