Suppose that you are purchasing a house ( loan amount =$200,000) and inquire about the terms for a 30-year fixed-rate mortgage. You are given the following two quotes: - Loan # A: - Annual interest rate of 3.75% with monthly payments and compounding - No discount points - Origination fee of 0.75% - \$928 in third-party closing costs - Loan # B: - Annual interest rate of 3.625% with monthly payments and compounding - 1.25 discount points - Origination fee of 1% - $18 in third-party closing costs (Enter the answer as a positive number and round your answer to 2 decimals. Also, report the effective borrowing cost without the percentage sign. For example if your calculated EBC is 5, record your answer as 5.00) Question 2 (1 point) What is the monthly payment for Loan B ? Your Answer: Answer Question 3 (1 point) What is the Effective Borrowing Cost (EBC) for Loan A (assuming no prepayment)? Your Answer: Which loan should you choose (assuming no prepayment)? Loan A Loan B Either Loan A or Loan B More information is needed Question 5 (1 point) What is the remaining mortgage balance at the end of third year for Loan A ? Your Answer: Answer What is the remaining mortgage balance at the end of third year for Loan B? Your Answer: Answer Question 7 (1 point) What is the Effective Borrowing Cost(EBC) for Loan A if we prepay at the end of the third year? Your Answer: Answer Question 8 (1 point) What is the Effective Borrowing Cost (EBC) for Loan B if we prepay at the end of th third year? Your