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Find the value of incremental cost

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Reference no: EM133111750

A borrower can obtain an 85 percent loan with an 8 percent interest rate

The loan is to be fully amortized over and monthly payments.

30 years. Alternatively, he could obtain a 95 percent loan at a 9 percent rate with the same loan term. The value of the purchase price is 100,000. The borrower plans to own the property for the entire loan term.

Find the value of incremental cost if the borrower planned to own the property for only five years?

Reference no: EM133111750

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