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Problem 1. A Monthly Mortgage.Please fill in the cells highlighted in GREEN Your local bank has offered you a mortgage of $100,000. There are no
Problem 1. A Monthly Mortgage.Please fill in the cells highlighted in GREEN Your local bank has offered you a mortgage of $100,000. There are no points, no origination fees, and no extra costs (meaning: you ge the full $100,000) The mortgage is to be paid back over 10 years in monthly payments, and the bank charges 12% annual percentage rate (APR) Problem 1.1. Calculate the monthly mortgage payments. Problem 1.2. Calculate the mortgage EAIR. Mortgage principal Annual interest rate Monthly interest rate Mortgage term (years) Mortgage term (months) Problem 1.1 Monthly payment Problem 1.2 Monthly IRR Effective annual interest rate (EAIR)
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