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

question 19

Multiple Choice

Given the following information,calculate the effective borrowing cost (EBC) .Loan amount: $166,950,Term: 30 years,Interest rate: 8 %,Payment: $1,225.00,Discount points: 2,Other Closing Expenses: $3,611.

• A)7.7%
• B)8.2%
• C)8.5%
• D)9.1%

---

Definitions:

Incidental Damages

Expenses or costs that arise directly from a breach of contract, beyond the direct damages or losses incurred.

Employment Contract

A legally binding agreement between an employer and an employee that outlines the terms of employment, including duties, responsibilities, compensation, and conditions of work.

Nominal Damages

Small monetary compensation awarded to a plaintiff in a lawsuit when no actual damage was suffered or when the plaintiff is unable to prove actual losses.

Plaintiff

The party who initiates a lawsuit or legal action against another party in a court of law.