(16 marks) Eduardo wants to buy a house (with no money down!) and the largest amount of bi-weekly payments he can afford is $7,400.00.

a) What is most expensive house Eduardo can buy if the interest rate on the mortgage is 8.725% compounded monthly.

b) If Eduardo insists on a 20 year amortization period, now what is the most expensive house he can afford? (Still with no money down and the same interest rate as in part a) )

c) Eduardo's mortgage broker says that with those payments (and a 25 year amortization period) they can afford a $1,300,000.00 house. What is the interest rate r⁽¹²⁾?