Calculate the borrower's effective cost of funds for the following loan if the loan is outstanding for the full ten year term: Loan assumptions: Loan amount: $200,000 Interest rate: 8.5 percent Amortization period: 20 years Loan Term: 10 years Payments per year: 12 Discount points: 2 Third party loan costs: Document preparation $300 Lender's policy of title insurance $700 Phase I reliance letter $250 Recording fees and doc stamps $400 Appraisal $1,500 Total = $3,150 Calculate the borrower's effective cost of funds for the following loan if the loan is outstanding for the full ten year term: Loan assumptions: Loan amount: $200,000 Interest rate: 8.5 percent Amortization period: 20 years Loan Term: 10 years Payments per year: 12 Discount points: 2 Third party loan costs: Document preparation $300 Lender's policy of title insurance $700 Phase I reliance letter $250 Recording fees and doc stamps $400 Appraisal $1,500 Total = $3,150