B. Calculate the borrower's effective cost of funds for the following loan if the loan is outstanding for the full 10-year term: Loan Assumptions: - Loan Amount: $225,000 - Interest Rate: 8.5% - Amortization Period: 20 Years - Loan Term: 10 Years - Payments Per Year: 12 - Discount Points: 2 - Third party loan costs: DocumentPreparation:LendersPolicyofTitleInsurance:PhaseIRelianceLetterRecordingFeesandDocumentStampsAppraisalTotal=$300$700$200$400$1,000$2,600 5. Calculate the periodic payment based on the contract loan amount, nominal interest rate, and full amortization period by using the following steps: a. Calculate the periodic payment based on the contract loan amount, nominal interest rate, and full amortization period. What is the periodic payment? b. Calculate the balloon payment based on contract loan amount and nominal interest rate. (Use FV method.) What is the balloon payment amount? c. Reduce the PV by the amount of the discount points and solve for I/YR. What is the yield? B. Calculate the borrower's effective cost of funds for the following loan if the loan is outstanding for the full 10-year term: Loan Assumptions: - Loan Amount: $225,000 - Interest Rate: 8.5% - Amortization Period: 20 Years - Loan Term: 10 Years - Payments Per Year: 12 - Discount Points: 2 - Third party loan costs: DocumentPreparation:LendersPolicyofTitleInsurance:PhaseIRelianceLetterRecordingFeesandDocumentStampsAppraisalTotal=$300$700$200$400$1,000$2,600 5. Calculate the periodic payment based on the contract loan amount, nominal interest rate, and full amortization period by using the following steps: a. Calculate the periodic payment based on the contract loan amount, nominal interest rate, and full amortization period. What is the periodic payment? b. Calculate the balloon payment based on contract loan amount and nominal interest rate. (Use FV method.) What is the balloon payment amount? c. Reduce the PV by the amount of the discount points and solve for I/YR. What is the yield