A Property Worth $16 Million Can Be Refinanced with an 80

question 37

Multiple Choice

A property worth $16 million can be refinanced with an 80% loan at 9.5% over 20 years.The balance on the current loan is $12,148,566.Loan payments are $113,302 per month.The loan balance in 10 years will be $8,396,769.If the property is expected to be sold in 10 years,what is the incremental cost of refinancing?

• A)9.71%
• B)10.36%
• C)12.42%
• D)14.58%

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Definitions:

Heroin

An illegal opioid drug derived from morphine, highly addictive and known for its powerful euphoric effects.

Injection

The act of administering a liquid, especially a drug, into the body using a needle and syringe.

Barbiturates

A class of drugs used as sedatives and hypnotics, historically prescribed for anxiety, insomnia, and seizure disorders, now less common due to the risk of dependence.

Benzodiazepines

A class of psychoactive drugs used to treat conditions such as anxiety, insomnia, and seizures by enhancing the effect of the neurotransmitter GABA.