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effective borrowing cost??? 3. Ella plans to buy a $250,000 house. She applied for an 80% loan-to-value (LTV) loan for 30 years. The interest rate

effective borrowing cost???

3. Ella plans to buy a $250,000 house. She applied for an 80% loan-to-value (LTV) loan for 30 years. The interest rate is 8% compounded monthly. 4 points are charged. a. Compute monthly payment using the face value of the loan. b. Compute effective borrowing cost. What is the effective borrowing cost if we think this loan might be repaid after 8 years

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