Use the following information to answer the questions.

$280,000 Loan Amount

30 year loan with monthly payments

4% quoted rate on the loan (annual rate)

2 points in costs to the lender

$3,000 in other closing costs

Loan is to be paid off at the end of the 4^th year.

What is the balance remaining on the loan after 4 years?

What is the Lenders Yield?

What is the Borrowers Cost?