Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 15, 2024

A borrower bought a house for $200000, he can obtain an 80% loan with a 30 year fully amortizing, 7% interest and monthly payment. Alternatively

A borrower bought a house for $200000, he can obtain an 80% loan with a 30 year fully amortizing, 7% interest 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 30 years.

ANSWER CHOICES 23.35% 20.18% 19.11% 26.42%
berbahat he can obtain BON loan win 30-year hally amortis. Interest rate and monthly payment. Alternatively, he could wet or loan. What the matcast ar Bromwww the Assume he will hold the loan for 30 years

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

1119563097, 9781119563099

Students also viewed these Finance questions

Question

Compare major theories of intelligence from the early 1900s to present.

Answered: 1 week ago

Question

★★★★★

Danielle Hastings was recently hired as a cost analyst by CareNet Medical Supplies Inc. One of Danielles first assignments was to perform a net present value analysis for a new warehouse. Danielle...

Answered: 1 week ago

Question

★★★★★

You are instructed to take a restrictive approach to firewall rulesas close to Deny- All as is practically possible. However, the staff needs to look at training videos online during regular business...

Answered: 1 week ago

Question

★★★★★

1. Your asset allocation benchmark has 5 asset classes: US large stocks, US small stocks, EAFE Equity, EM Equity, and REITS. The corresponding benchmark weights are: US large stocks: 35% US small...

Answered: 1 week ago

Question

★★★★★

Question Stimulus: In the text, special note is made of Weiss, Prifitera, and Roids study of test bias, which had an extensive sample (N = 700) representative of the U.S. population. What is The...

Answered: 1 week ago

Question

★★★★★

Name three things that you would do differently or consider if you were using Individual Psychology with an 8 year old, a 12 year old, and a 15 year old. Explain why you would make these adjustments...

Answered: 1 week ago

Question

★★★★★

What kinds of physical abilities permit Kristy to play baseball? How did these abilities change as she moved from preschool into middle childhood? What abilities does she probably still lack, given...

Answered: 1 week ago

Question

★★★★★

Jan's electric bill is averaging $12 per day mostly due to the air conditioner. By setting the AC to a higher temperature, closing curtains to block sunlight, and using direct-blowing fans for...

Answered: 1 week ago

Question

★★★★★

What stage of human development are you in currently and what are your main challenges/activities? (I AM 24) Reflecting on Erikson's theory of psychosocial development, which stage do you find...

Answered: 1 week ago

Previous Question Next Question