An investor has $60,000 to invest in a $280,000 property. He can obtain either a $230,000 loan at 8.5%

for 20 years or an $180,000 loan at 9% for 20 years and a second mortgage for $40,000 at 11% for 15

years. All loans require monthly payments and are fully amortizing.

=> What alternative should the investor choose, assuming ownership for the full loan term?

Please show work in Excel!