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Question 17 A borrower bought a house for $300,000; he can obtain an 80% loan with a 30-year fully amortizing, 7% interest rate and monthly

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Question 17 A borrower bought a house for $300,000; he can obtain an 80% loan with a 30-year fully amortizing, 7% interest rate and monthly payment. Alternatively, he could get a 30-year fully amortizing 90% loan at 9%. What is the incremental cost of borrowing the additional fund? Assurne the borrower will hold the loan for 30 years. 23 69% 24.12% 22.02% 23.01%

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