What is your EBC on the loan described in question #10 if you sell the office building after 36 months and pay off the loan at the sale (rounded to 2 decimal places)? (Note, you'll still incur the $10,000 in closing costs to close the loan.)

A. 3.74%

B. 3.87%

C. 4.26%

D. 4.53%

Suppose the bank gives you another option for a 30-year loan at a 3.3% interest rate. Will monthly payments for this option (Option 2) be higher or lower than the monthly payments for the original loan (Option 1)?

A. Option 2 monthly payments higher than Option 1 monthly payments

B. Option 2 monthly payments lower than Option 1 monthly payments

Solved Information from Q10: Suppose you take out the following loan to finance the purchase of a small commercial office building: $2,750,000, 25-year term, fully amortizing, at a 3% interest rate. What is the lenders yield if it charges two discount points and you use the entire 25 year term to pay off the loan (rounded to 2 decimal places)? =3.19%