1. (20 pts) Your nance company initiates mortgage loans to residential borrowers. Your company borrows money at 2.5% APR compounded monthly. You initiate the mortgages to your customers at 6% APR compounded monthly. You then sell the mortgages to banks which will administer the loans. You charge a 10% commission on the present value of each mortgage when it is initiated. If you have just initiated a 30-year mortgage loan for $250,000... a. Show the cash ow diagram from the standpoint of the residential borrower (customer)? b. What is the monthly payment due from the residential borrower (customer)? 0. Show your cash ow diagram from the standpoint of your nance company. d. What is the present value of the mortgage when initiated? e. What is your commission when you sell the loan to a bank? f. What is the present value of the mortgage loan to the bank