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You have taken out the loan given in the table below. After 11 years, you decide to pay for the house in full, by paying the remaining balance to the lender. PV 200,000 0.05 N 30 m 12 Prepay penalty (2%) 0.02 Given that you incur a 2% prepayment penalty, what the effective annual interest rate you will pay? MacBook Air FS F6 F7 FB F9 This problem looks at the impact of an unanticipated inflation. You just took out a loan today, with the relevant information in the table. The interest rate in the table assumes an inflation rate of 1.5%, thereby having io = 3.00%. PV $590,000 3.00% io N 30 m 12 FV $0 But, in an expected event for both the borrower and lender, inflation falls by 0.5%, thereby reducing the interest rate to in = 2.5%. This interest rate change occurred today as well (thus, you do not need to worry about changing N.) What is the dollar loss or gain to the lender (if there is a loss, include a negative sign)? MacBook Air