Tom wants to purchase a property for $300,000. he can borrow a 80% ltv fixed-rate loan, with 4.5% annual interest rate and a 3% origination fee. or, he can borrow a 90% ltv fixed-rate loan, with 5.5% annual interest rate, and a 3% origination fee. both loans have a 30 year amortization period. if he plans to prepay the loan at the end of 3rd year, what will be the incremental cost of borrowing for him to to borrow the additional 10% loan amount?
a) 12.25%
b) 14.47%
c) 13.68%
d) 10%

Martha is one producer in the perfectly competitive jelly industry. last year, martha and all of her competitors found themselves earning economic profits. if there is free entry and exit, what do you expect to happen to the number of suppliers in the industry and the price of jelly? the number of suppliers will increase, and the price of jelly will fall. the number of suppliers will decrease, and the price of jelly will increase. the number of suppliers will increase, and the price of jelly will increase. the number of suppliers will decrease, and the price of jelly will fall.