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2. A property worth $100,000 can be financed with an 80% loan at an 8% interest with a term of 25 years. Alternatively, the house
2. A property worth $100,000 can be financed with an 80% loan at an 8% interest with a term of 25 years. Alternatively, the house can be financed with 90% loan with an interest rate of 8.50% also amortized over 25 years. a) What is the incremental cost of borrowing additional funds? (2 points) Alttl l0o,ooo 7 ryt 505 23 3.57 7 300 b) What is the incremental cost of borrowing additional funds if the borrower plans to be in the home only 5 years? (2 points) Pr
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