FINANCE

Please answer it with a comprehensive step by step manner along with formula. I do not want the answer to be calculated on excel (reject excel solution), I want it to be calculated in a manual way. Thanks QI) You are considering three loan proposals to finance the purchase of investment property. The purchase price is RM500,000 and the expected net operating income is RM60,000. The alternatives are: Loan-to-value ratio is 90 percent, interest rate is 9 percent, and terms are 25 years, level amortizmg with monthly payments. ii. Loan-to-value ratio is 80 percent, interest is 8 percent, and terms are 25 years, level amortizing with monthly payments. iii. Loan-to-value ratio is 80 percent, interest is 7.5 percent + three points, and terms are 25 years, fully amortized with monthly payments. (a) Determine the effective interest rate for each loan, assummg the loan is outstanding for the full 25-year amortization term. (b) Suggest the most favorable loan alternative to the investor's financial position.