7A)You bought a house with a 15-year mortgage with loan size $100,000 and interest rate 4%. Assuming the total transaction cost is $4,000 and your marginal income tax rate is 30%. What is the annual effective cost of this loan after-tax if your loan will be outstanding for 1 month?

Select one:

a. 5.92%

b. 52.92%

c. 4%

d. 529.2%

7B)Which of the following is not a type of fixed rate mortgage?

Select one:

a. Interest-Only Mortgages

b. Graduated payment mortgage (GPM)

c. Negative Amortization Mortgages

d. Balloon Mortgages