Given the Following Information, Calculate the Effective Borrowing Cost (EBC)

question 7

Multiple Choice

Given the following information, calculate the Effective Borrowing Cost (EBC) . Loan amount: $175,000, Term: 30 years, Interest rate: 7 %, Payment: $1,164.28, Discount points: 1 point, Origination fee: $3,250. Assume the loan is held until the end of year 10.

• A) 0.6%
• B) 3.8%
• C) 7.0%
• D) 7.4%

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Definitions:

Dynamic Perception

The ability to perceive motion and changes in the environment, integrating sensory information over time.

Biological Patterns

Refers to recurring characteristics or events in the biological world, such as genetic sequences, behavioral phenomena, or growth formations in organisms.

Temperament

An individual's innate predisposition towards emotional responses and behaviors, often evident from infancy.

Infancy

The period in human development from birth to about 18 months when a child is learning basic motor skills, developing cognitively, and beginning to engage socially.