1. Consider a 15-year mortgage of $90,000 at 6% interest compounded monthly with two discount points and a monthly payment of $759.47. The APR for the mortgage is obtained by solving P = 1 - (1 + i)-n / i. R for i and then multiplying by 12. What are the values of P, n, and R?
2. Consider a 20-year mortgage of $100,000 at 6% interest compounded monthly with three discount points and a monthly payment of $716.43. Assume that the loan is expected to be held for 6 years, at the end of which time the unpaid balance will be $81,298.44. The effective mortgage rate is obtained in Excel by evaluating 12* RATE (m, -R, P, -B). What are the values of m, R, P, and B?