To buy your dream home you use a 4/16 reset loan that pays interest only (bullet loan) for the first 4 years, followed with a reset payment to amortize over the remaining 16 years. The loan amount is $280,000 at 4.75%, with 2 discount points (to the lender) and $1450 in third-party closing costs which the borrower must pay.

1. What net amount does the lender disburse?

2. What net amount do you as a borrower receive?

3. What is your monthly payment during the first 4 years?

4. What is your monthly payment during the remaining 16 years?

5. What is your balance 6 years after you take out the loan?

6. If you repay this loan after 6 years, what is the yield (expressed as an APR) for the lender?

7. What is the yield expressed as an EAR?

8. If you repay this loan after 6 years, what is the effective borrower cost (EBC) to you (expressed as an APR)?

9. What is the EBC expressed as an EAR?

please hand write equations and how to solve