Consider a 30-year home mortgage loan with monthly payments. The home value is $400,000. The buyer will pay 20% of the value upfront, along with any loan fees, and will borrow the remaining 80% of the home value. The interest rate on the loan is 5.5% (APR).

1. What is the monthly payment for the loan?
2. What is the EAR associated with the loan, assuming that no fees are charged?
3. Determine the interest paid, principal paid, and end-of-period loan balance for the first month of the loan.
4. Now assume that the lender charges a fee equal to 1.5% of the loan value. What is the EAR for the loan incorporating the effect of the fee?
5. Suppose that, just after making the 60th monthly payment on the loan, you decide you want to pay off the remainder of the loan. What is the remaining loan balance?
6. What is the total amount of interest paid in the 5th year of the loan?