Amidcareer professional couple is interested in purchasing a new homecosting \($750\),000.They can afford a 20 percent, or

\($150\),000, down payment, leaving \($600\),000 to be borrowed, a loan in the ‘‘jumbo’’ category. They prefer to have a conventional loan, and one lender has offered a 30-year loan at 6.9932 percent with no points and no other closing costs.

a. What is the amount of the monthly payment? Calculate this using both Excel® and one of the Web-based calculators.

b. If, immediately after the one hundred twentieth payment (10 years), the professional couple decides to sell the house, what will be the unpaid balance on the loan?

c. Use Excel®’s EFFECT function (or RATE function) to determine the effective annual interest rate for the loan.

d. Determine the APR using Excel® and one of the Web-based calculators.