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    Exam 6: Mortgages: Additional Concepts, analysis, and Applications
  5. Question
    A Borrower Finds That the Incremental Cost of Borrowing an Extra
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A Borrower Finds That the Incremental Cost of Borrowing an Extra

Question 2

Question 2

True/False

A borrower finds that the incremental cost of borrowing an extra $10,000 is 14%.The borrower can earn 12% on alternative investments of comparable risk so he would be better off by not borrowing the extra 14%.

Correct Answer:

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