12. Suppose that a lender offers you a 15-year, monthly payment mortgage for $120,000 at 6 percent with two discount points.

a. Calculate your monthly payment.

b. What is the APR on this loan?

c. What is the effective cost if the loan is repaid at the end of year 8?

These are the correct answers, I just need to see the work

a.

$1,012.63

b.

6.32%

c.

6.39%