(APR and EAIR) Your local bank has offered you a mortgage of $100,000.

There are no points, no origination fees, and no extra initial costs (meaning: you get the full $100,000). The mortgage is to be paid back over 10 years in monthly payments, and the bank charges 12% annual interest computed monthly (1%, this rate is “stated” or APR).

a. Calculate the monthly mortgage payments.

b. What is the mortgage EAIR?