A Borrower Is Purchasing a Property for $180,000 and Can

question 17

Multiple Choice

A borrower is purchasing a property for $180,000 and can choose between two possible loan alternatives.The first is a 90% loan for 25 years at 9% interest and 1 point and the second is a 95% loan for 25 years at 9.25% interest and 1 point.Assume the loan will be held to maturity,what is the incremental cost of borrowing the extra money.

• A) 13.66%
• B) 13.50%
• C) 14.34%
• D) 12.01%

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Definitions:

Dorsal Roots

Nerve fibers that enter the spinal cord, carrying sensory information from the body to the brain.

Ventral Roots

The efferent motor root of a spinal nerve, passing anteriorly from the spinal cord, that carries motor signals from the nervous system to the muscles.

Cervical Region

The part of the spine located in the neck, consisting of seven vertebrae.

Endoneurium

A layer of delicate connective tissue that encloses the myelin sheath of each peripheral nerve fiber, providing support and insulation.