Problem set # 7 1. Assume that you can get a home loan from your local cooperatively owned credit union. It is a $375,000 loan, but you must pay a $1000 not refundable processing fee, and you must purchase stock in the amount of $2000.00 which earns nothing but you get it back at the end of the loan period). The annual interest rate offered would be 6.6%, and you would make MONTHLY payments for 15 years until the loan is paid off. 375. DOO a. Calculate the Monthly payment on the 8039086 loan at 6.6% annual interest 6.6%/12 15 x 12 375000 $3,287,30 b. What would be the period 0 cash flow (loan proceeds - the stock purchase - the processing fee). 375.000 2,000 $ 372,000 cash inflow 1,000 372,000 c. What would be the final period cash flow (the final payment + the stock back). 2,000 -3287 - $ 1,287 d. Set the problem up in a spreadsheet and calculate the IRR of the cash flow stream. (be sure to convert it back to an annual rate and go to 4 places past the decimal)