a borrower bought a house for $200,000; he can obtain an 80% loan with a 30 year fully amortizing, 7% interest rate and monthly payment. alternatively he could get a 90% loan at 8.5% with same term. what is the incremental cost of borrowing the additional fund? assume he will hold the loan for 10 years.

answer choices

19.53%

22.42%

18.91%

20.35%