MORTGAGE WITH ANNUAL PAYMENTS
Mortgage principal	100,000
Annual interest rate	10%
Mortgage term (years)	20
Annual mortgage payment	11,745.96				In the Rate function set the PV (meaning: the amount actually received) to the mortgage principal net of the points [100,000*(1-1.2%) ] minus the processing costs.
Mortgage points	1.50
Processing costs ($)	750.00
Net mortgage received	97,750.00
Annual IRR (EAIR)	10.34%
Check: Build an amortization table for the Mortgage
Year	Principal at beginning of year	Payment at end of year	Interest component of payment (use EAIR)	Repayment of principal	Principal at end of year
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Please fill out amortization table

(Mortgage + EAIR + processing fee) Your local bank has offered you a 20 -year, $100,000 mortgage. The bank is charging 1.5 points, with "processing" costs of $750; both points and processing costs are deducted from the mortgage when it is given. The mortgage carries a 10% annual interest rate and is paid in 20 equal annual payments. Note that the annual payments on the mortgage are calculated on the full amount of the mortgage (that is, $100,000). a. Calculate the annual mortgage payment. b. Calculate the EAIR. c. Present an amortization table which shows the amount of effective interest you pay each year