Question 16 (16 points) A borrower has two loan alternatives: a $170,000 loan at 5.8% with monthly payments over 30 years, or a $182,000 loan at 5.95% and a 30 year term. a. (6 points) What is the incremental cost of borrowing the additional funds if the borrower plans to pay the loan over the entire loan term? b. (5 pts.) How would your answer change if the borrower planned to pay off the loan after 7 years? c. (5 pts.) How would your answer to a. change if the first loan has a 25 year term? Paragra V SO > a 2 Previous Page Next Page Page 16 of 20