John wants to buy a property for $105,000 and wants an 80% loan for $84,000. A lender indicates that a fully amortizing loan can be obtained for 30 years (360 months) at 8% interest; however, a loan fee of $3,500 will also be necessary for John to obtain the loan.

A. What is the APR for the borrower, assuming that the mortgage is paid off after 30 years (full term)?

B. If John pays off the loan after 5 years, what is the effective interest rate? Why is it different from the effective interest rate in A?

C. Assume the lender also imposes a prepayment penalty of 2% of the outstanding loan balance if the loan is repaid within 8 years of closing. If John repays the loan after 5 years with the prepayment penalty, what is the effective interest rate?

Please demonstrate the the solution with Excel functions and values. I need help determining which excel functions and values to use.