3. You've purchased your first home. The property taxes on it are $3 500 per year. The mortgage stipulates that the owner must pay 1/12 of the annual taxes each month to the bank so that the taxes can be paid on April 1. Your first payment is at the end of April and the last payment is at the end of March of the fol- lowing year. Assume that cost of money is 6.5% nominal annual interest, compounded monthly a. b. c. Draw the cash flow diagram for one yea What is the effective annual interest rate (in %)? Determine how much profit (in S) the mortgage company makes each year on the owner's tax money. Profit in this case is the difference in the sum of the amount you pay and the amount paid in property taxes. 4. Joan Student is projecting that she will owe a total of $24,750 in student loans when she graduates. The loans have an annual nominal interest rate of 6.5%, compounded monthly. The entire amount must be repaid within 10 years and she will make the minimum monthly payments (120 payments). a. b. c. Draw the cash-flow diagram that describes this situation. What is the effective annual interest rate (in %)? Determine what her minimum monthly payment will be