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

question 35

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.Assuming the loan will be repaid in 5 years,what is the incremental cost of borrowing the extra money?

• A)13.95%
• B)13.67%
• C)14.42%
• D)12.39%

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Definitions:

Insomnia

A sleep disorder characterized by difficulty falling asleep, staying asleep, or both, leading to impaired daytime functioning.

Apnea

A temporary cessation of breathing, especially during sleep.

Sleeplessness

The condition of being unable to sleep, also known as insomnia.

Sleep Apnea

A condition where an individual experiences interruptions in breathing or instances of light breathing while asleep.