Greed bank ltd persuades Alex to avail an interest only ARM with the following terms:

Amount of loan : Rs 20lakhs, interest rate of 9% p.a which may be assumed to be fixed during the entire tenure of the loan . Interestonly period of 10years , followed by 10 more years for payment of both interest and principal. The loan will be secured by way of a mortgage of Alex's house .



Questions :

A: what payment of interest and/or principal does Alex need to pay in first 10 interest only years ?



B : what EMIs will be attracted and for how many years , after the interest only period ends?



C: what difficulties could alex be facing in such a loan ?



D: what is the biggest risk for the lender is such a loan ??