16. In order to obtain the loan in question #12, you had to pay a 0.50% origination fee and 1.5 discount points. If the loan also came with $2,250 in third-party closing costs, what is the effective borrowing cost of this loan if you pay off the loan at the end of the 12^th year?

question 12

12. How much interest will you pay during the 14^th year of a $350,000 house price, 30 year, 6.5% monthly compounded, 80 LTV loan?

a. 6.87%

b. 7.02%

c. 7.54%

d. 7.68%

e. None of the above