Question
3. Compute the required monthly payment on a $100,000 10-year-fixed-rate mortgage with a nominal interest rate of 8%. What is the balance due at the
3. Compute the required monthly payment on a $100,000 10-year-fixed-rate mortgage with a nominal interest rate of 8%. What is the balance due at the end of the first year? Construct the amortization table for the 1st year (12 months). Show your work; do not use a mortgage calculator.
4. Suppose you have two offers on the mortgage in problem 3: an interest rate of 6% or interest rate of 5% with 1 discount point. If you intend to stay in the house for 5 years, which offer do you accept, %6 or 5% with 1 discount points? Why?
And please don't do it in Excel sheets
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