Choose the one alternative that best completes the statement or answers the question. If you have computer related question, take a screen shot and contact student help.

Good Luck.

Question $20$

$3\mathrm{.}3$ pts

A borrower bought a house for $$300,000$; he can obtain an $80\%$ loan with a $20-$year fully amortizing, $7\%$ interest rate and monthly payment. Alternatively, he could get a $30-$ year fully amortizing $90\%$ loan at $9\%.$

What is the incremental cost of borrowing the additional fund?

$16\mathrm{.}24\%$

$16\mathrm{.}98\%$

$15\mathrm{.}17\%$

$17\mathrm{.}52\%$