1. Calculate the amount of loan payments of Bank A

2. Calculate the amount of loan payments of Bank B

3. Calculate the actuarial rate of Bank B

4. Calculate the APR of Bank A.

5. Calculate the APR of Bank B.

6. Which Bank would you choose?

Item Loan Amont Contractual Rate Conversion Periods Life of Loan (years) Method of Payment Closing Costs Points Bank A Bank B $221,700.00$2m,mc (1) (2) (3) (4) Fully Amort. Fully Amort. 10.62% 10.80% 12 12 27 27 (5) (6) $3,051 (7) $3,051 0.67 193 Item Loan Amont Contractual Rate Conversion Periods Life of Loan (years) Method of Payment Closing Costs Points Bank A Bank B $221,700.00$2m,mc (1) (2) (3) (4) Fully Amort. Fully Amort. 10.62% 10.80% 12 12 27 27 (5) (6) $3,051 (7) $3,051 0.67 193