Evaluate the financing package described below based on a purchase price of $500,000. (Note: All loan fees are paid separately and not added to the financed portion.)

Cost of funds: 7.5% (interest rate)

Amortization period: Interest only

Amount of funds borrowed: 90% loan to value

Loan duration: 10 years (after which balloon will be due)

Loan origination fees: 1% plus mortgage fees of 3%

Calculate (round all answers in parts 'a-d' to the nearest dollar):

Loan amount

Loan fees

Monthly payment amount

Balloon payment at the end of the loan duration (if any)

Indicate whether the particular financing package would be better suited to a short-term holding period, intermediate holding period, or long-term holding period.

Present work in Excel