Given the Following Information, Calculate the Effective Borrowing Cost (Rounded

Multiple Choice

Given the following information, calculate the effective borrowing cost (rounded to the nearest tenth of a percent) . Loan amount: $166,950, Term: 30 years, Interest rate: 8 %, Monthly Payment: $1,225.00, Discount points: 2, Other Closing Expenses: $3,611.

A) 7.7%
B) 8.2%
C) 8.5%
D) 9.1%