#$2.$ You are offered a bullet loan of $750,000$ at $5\mathrm{.}5\%$ for $36$ months with $2$ points.

What is your expected financing cost expressed as an EAR assuming you make monthly interest only payments and repay the loan at month $36?$

If you choose to make payments of $$5000$ per month, and then repay the balance at month $36,$ what will your expected financing costs $($expressed as EAR$)$ be$?$

Why are these different?