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

question 26

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,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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