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Using the figure below, calculate the lender's yield. Month Interest Total Principal Payments Total Balance Cash Flow Interest 0 0 0 0 0 0

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Using the figure below, calculate the lender's yield. Month Interest Total Principal Payments Total Balance Cash Flow Interest 0 0 0 0 0 0 0 25,000 1 0 194,000 0 0 0 194,000 -194,000 2 3,000 196,000 0 3,000 3,000 390,000 -194,000 3 5,000 198,000 0 5,000 4 7,000 201,000 112,000 7,000 5 8,000 8,000 112,000 $8,000 6 7,000 7,000 112,000 7,000 7 6,000 6,000 81,000 6,000 8 5,000 5,000 81,000 5,000 5,000 588,000 -194,000 118,000 677,000 -83,000 119,000 573,000 112,000 118,000 467,000 112,000 86,000 392,000 81,000 86,000 315,000 81,000 9 4,000 4,000 81,000 4,000 85,000 238,000 81,000 10 3,000 3,000 81,000 3,000 84,000 159,000 81,000 11 2,000 2,000 81,000 2,000 83,000 80,000 81,000 12 1,000 1,000 81,000 1,000 82,000 0 81,000 Total 51,000 825,000 822,000 51,000 869,000 O 70.42% O 1.79% No answer provided. 21.45% 5.87%

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