Daniel and Evelyn are considering buying a house valued at $250,000 They have combined savings of $20,000, and the bank approved a $200,000 first mortgage Another financial institution agreed to provide them with a $20,000 second mortgage Also, Daniel has just won $10,000 from a lottery If Daniel and Evelyn invested their money in guaranteed certificates, they would be able to earn 4 The interest rates offered by the bank are 6 for the first mortgage and 7 for the second Calculate their cost of capital please show working Daniel and Evelyn are considering buying a house valued at $250,000 They have combined savings of $20,000, and the bank approved a $200,000 first mortgage Another financial institution agreed to provide them with a $20,000 second mortgage Also, Daniel has just won $10,000 from a lottery If Daniel and Evelyn invested their money in guaranteed certificates, they would be able to earn 4 The interest rates offered by the bank are 6 for the first mortgage and 7 for the second Calculate their cost of capital

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Question: Daniel and Evelyn are considering buying a house valued at $250,000. They have combined savings of $20,000, and the bank approved a $200,000 first mortgage.

Daniel and Evelyn are considering buying a house valued at $250,000. They have combined savings of $20,000, and the bank approved a $200,000 first mortgage. Another financial institution agreed to provide them with a $20,000 second mortgage. Also, Daniel has just won $10,000 from a lottery. If Daniel and Evelyn invested their money in guaranteed certificates, they would be able to earn 4%. The interest rates offered by the bank are 6% for the first mortgage and 7% for the second. Calculate their cost of capital. please show working

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