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Question 10 0/1 pts You are offered loans from two competing lenders on the purchase of a $6.5 million property for a 5-year term

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Question 10 0/1 pts You are offered loans from two competing lenders on the purchase of a $6.5 million property for a 5-year term (25-year amortization). Assume that payments are made ANNUALLY. The terms are outlined below: Loan 2 LTV Rate Loan 1 62.5% 70.0% 6.375% 6.875% Fees (total) $55,000 $77,000 Calculate the incremental cost for the extra funds provided by loan 2. Hint: Remember that the loan will not be outstanding a full 25 years. ENTER YOUR ANSWER AS A DECIMAL WITH 4 PLACES. IF YOUR ANSWER IS 13.59%, YOU SHOULD ENTER 0.1359.

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