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Use this information to answer all questions in this quiz: A borrower is faced with choosing between two FRM/CPM loans offered by a single lender.

image text in transcribed Use this information to answer all questions in this quiz: A borrower is faced with choosing between two FRM/CPM loans offered by a single lender. Loan A is available for $75,000 at 6% for 30 years with 6% in origination fees. Loan B would be made for the same amount but for 7% interest for 30 years with 2% in origination fees . All loans are fully amortizing. Question 1: If either loan is to be repaid in 20 years, which loan would the lender prefer the borrower accept (e.g. which loan has the highest lender's yield?) Loan B Loan A

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