For Problems 15 – 20 select FOUR of these problems. Write “…
For Problems 15 – 20 select FOUR of these problems. Write “SKIP” for only one of these 5 problems. P5A 5. A borrower can obtain a $160,000 loan with a 6 percent interest rate and monthly payments. The loan is to be fully amortized over 25 years. Alternatively, he could obtain a $180,000 loan at a 5.75 percent rate for 30 years if she agrees to pay 5 points at closing. What is the incremental cost of borrowing the additional funds (Please show what you enter into the cash flow buttons, if you use them)?