Question 16 1 pts Calculate the effective cost (or effective annual rate, EAR) of the following loan if it is completely paid off at the end of year 5: Initial loan amount: $100,000; Term: 30 years; Interest rate: 7.5%; Monthly Payment; The origination fee is $1250 plus 1.25 discount points. The lender will also charge 5% prepayment penalty if paid off before maturity. 8.285 % 8.908% none of the above is correct. 8.645 % Question 17 1 pts You borrow $100,000 mortgage with monthly payments. You can either choose 15-year term with interest rate 7%, or choose 30-year term with interest rate 8%. If both loans are held to maturity, what is the difference of total interest payment between these two mortgages? none of the above is correct. O $84,854 $102.366 O$125,786