A house price of $235,000 can be financed with the two loans with monthly payments: Loan...

A house price of $235,000 can be financed with the two loans with monthly payments:

	Loan Amount	Term (years)	Interest Rate
Loan 1	$ 180,000	30	5%
Loan 2	$ 20,000	30	7%

What is the annual cost if there are no costs associated with the two loans and the borrower will hold the loan for entire term?

5.21%

5.81%

6.21%

6.81%

Expert Solution

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jeff jeffy answered 1 year ago

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