Suppose that you have the following two loans
Suppose that you have the following two loans with monthly payments:ChoiceLoan AmountTerm (years)Interest Rate1$90,000157%2$80,000206%Assuming that there is no origination cost with the loans. If you will pay off the loan in 15 years(180 months), what is the incremental cost of the $10,000 for loan 1 over loan 2?