Question 2 1 / 1 pts You are considering the following fixed interest rate mortgage loan alternatives: Alternative 1: $180,000 initial loan balance 4.00% annual nominal interest rate 30-year amortization schedule $859.35 monthly loan payment Alternative 2: $195,000 initial loan balance 4.25% annual nominal interest rate 30-year amortization schedule $959.28

What is incremental cost of borrowing the additional $15,000? 0.58% 4.25% 5.8% Correct! 7.01%?