Show your work please.

Tom has a choice in borrowing money for a new house valued at $150,000. He can obtain an 80% LTV loan at 8% for 30 years with a 1% origination fee and one discount point, or he can obtain a 90% LTV loan at 8% for 30 years with a 1% origination fee, two discount points, and an up-front mortgage insurance premium of 0.5% of the loan amount plus an annual premium of 0.3% of the loan amount. Tom intends to sell the house in 8 years.

76. What is incremental loan balance?

a. $11,536

b. $12,151

c. $13,653

d. $14,734

e. None of the above

77. What is the marginal cost of the additional funds?

a. 14.14%

b. 12.60%

c. 10.08%

d. 9.93%

e. None of the above