A mortgage loan in the amount of $100,000 is made at 6 percent interest for 20 years. Payments are to be monthly in each part of this problem.

ANSWERED

a. What will monthly payments be if

(1) The loan is fully amortizing? PMT = $716.43

(2) It is partially amortizing and a balloon payment of $50,000 is scheduled at the end of year 20? PMT = $608.22

(3) It is a nonamortizing, or "interest-only" loan? PMT = $500

(4) It is a negative amortizing loan and the loan balance will be $150,000 at the end of year 20? PMT = $391.78

D. (NEEDS TO BE ANSWERED)

Assume that the lender charges 3 points to close the loans in parts a (1) through a (4). What would be theAPRfor each?