A recent civil engineering graduate wishes to buy a new home costing $200,000, make a 3.5 percent down payment and finance the remaining amount. The rate quoted for a conventional 30-year loan is 6.4495 percent interest with 1.625 points and no other closing costs. a)What is the amount of the monthly payment if the points are paid at the time of closing and not added to the loan? b)What is the amount of the monthly payment if the points are added to the loan?

Cost of New Home "CASH Payment" Annual i Down Payment Amount Needed Part A. Monthly Payments A ntly Payments) P (1+i)n(n))/(((1+i)n(n))-1) A with Excel Part B Cost of New Home "CASH Payment" Annual i Down Payment Amount Needed Including the Points Part A. Monthly Payments P ((i*(1+i) (n))/(((1+i) n(n))-1) A (Montly Payments) A with Excel Part C P-A (((1+i)nn-1)/ (i (1+i nn) PV Excel