3. Buster Poindexter has decided to purchase a new home in beautiful rural Vermont. The cost of the home is $400,000 and the fifteen-year loan requires a 20% down payment. The mortgage company offers the Poindexter's a variable rate mortgage at a nominal 4% interest rate for the first two years of the loan, 6% nominal interest rate for years three through eight, and 8% nominal interest rate for the remaining years. Assume interest is compounded monthly. a. Compute the monthly payment that Buster will have to pay for the first two years of the loan, the monthly payment for years three through eight and for the years nine through fifteen. b. Compute the effective monthly interest rate being charged over the fifteen- year period. Compute the effective monthly interest rate, the nominal interest rate per year, and the effective interest rate per year for the variable rate mortgage. You may use Excel to compute these interest rates. Include a printout of your Excel spreadsheet and submit your Excel file to the Canvas course page. Mortgage Points Calculator Calculate View Report Buying points can save you $6,818 over 10 years. mi Mortgage with points: Monthly payment $9551 Mortgage without points: Monthly payment $1,003 Mortgage Points Calculator Inputs Calculate totals for 10 years in home, show amortization by year Totals after 10 years in your home. 1-1 $140 $120 Principal Interest $100 $80 Thousands of Dollars $60 $40 $20 so With Points Without Points Principal Balance by Year 3. Buster Poindexter has decided to purchase a new home in beautiful rural Vermont. The cost of the home is $400,000 and the fifteen-year loan requires a 20% down payment. The mortgage company offers the Poindexter's a variable rate mortgage at a nominal 4% interest rate for the first two years of the loan, 6% nominal interest rate for years three through eight, and 8% nominal interest rate for the remaining years. Assume interest is compounded monthly. a. Compute the monthly payment that Buster will have to pay for the first two years of the loan, the monthly payment for years three through eight and for the years nine through fifteen. b. Compute the effective monthly interest rate being charged over the fifteen- year period. Compute the effective monthly interest rate, the nominal interest rate per year, and the effective interest rate per year for the variable rate mortgage. You may use Excel to compute these interest rates. Include a printout of your Excel spreadsheet and submit your Excel file to the Canvas course page. Mortgage Points Calculator Calculate View Report Buying points can save you $6,818 over 10 years. mi Mortgage with points: Monthly payment $9551 Mortgage without points: Monthly payment $1,003 Mortgage Points Calculator Inputs Calculate totals for 10 years in home, show amortization by year Totals after 10 years in your home. 1-1 $140 $120 Principal Interest $100 $80 Thousands of Dollars $60 $40 $20 so With Points Without Points Principal Balance by Year