Please show your work.

What release price should the lender charge in order to receive a 15% annual yield from this loan?

Suppose that you are seeking to purchase a 15-acre lot with the intention of subdividing the lot and building 30 houses on the lot. You anticipate the purchase price of the parcel will be $150,000 per acre with an additional $50,000 per acre in site development costs. You estimate that your construction costs will be $175,000 per house. You expect to sell 5 houses per month beginning in month 7.

A lender is willing to provide you with a development loan for 80% of the total project costs. The proceeds of the loan will be dispersed in 5 equal draws that will take place at closing and during months 1-4. The lender will charge an origination fee equal to 1% of the total loan amount.