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A lender has offered you either a $300,000 30-year FRM Loan at 4.32% or a $330,000 30-year FRM loan at 4.68% with a $100 per

A lender has offered you either a $300,000 30-year FRM Loan at 4.32% or a $330,000 30-year FRM loan at 4.68% with a $100 per month PMI payment for first 64 months. What is the incremental borrowing cost (IBC) of the two loan options if you do not intend to prepay either loan? Please indicate your answer as an ANNUAL percentage with two spaces right of the decimal.

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