10. (Mortgage + EAIR) Your local bank has offered you a 20- year, $100,000 mortgage. The bank is charging 1.5 points, with “processing” costs of $750;

both points and processing costs are deducted from the mortgage when it is given. The mortgage carries a 10% annual interest rate and is paid in equal monthly payments. Note that the monthly payments on the mortgage are calculated on the full amount of the mortgage (that is, $100,000).