1. Suppose that you have just borrowed $250,000 in the form of a 30 year mortgage. The loan has an annul interest rate of 9% with monthly payments and monthly compounding. a. What will your monthly payment be for this loan? b. What will the balance on this loan be at the end of the 13th year? c. How much interest will you pay in the 6th year of this loan? d. How much of the 224th payment will consist of principal? 2. Suppose that you are considering a loan in which you will borrow $275,000 using a 30y ear loan. The loan has an annual interest rate of 15% with monthly payments and monthly compounding. Suppose also that the lender is charging you a 0.75% origination fee, you are paying 3 points in order to get the 15% interest rate, and the loan has $675 in thirdparty closing costs associated with it. a. What will the effective borrowing cost be for this loan if you make all of the scheduled payment? b. What will the lender's yield be for this loan if you make all of the scheduled payments? c. What will the effective borrowing cost be for this loan if you pay off the loan at the end of the 4th year? 3. Suppose that you are considering taking out an adjustable-rate mortgage with the followine terms: a. What will the initial monthly payment be for this loan? b. If the loan's interest rate adjusts every year and the prime rate falls to 2.75% by the end of the first year, what will your payment be in the second year of the loan? c. What is the highest interest rate that the lender could charge over the life of the loan