Question $19$

$3$ pts

You want to buy a house currently selling for $$1,200.$ Your mortgage broker offers a $30-$year $7\mathrm{.}2\%$ APR loan with a $20\%$ down payment. The mortgage requires monthly payments starting next month $)=(1.$

A$.(1$ point$)$ What is the effective annual rate $($EAR$)$ on the loan?

B$.(1$ point$)$ What is the monthly payment of the loan?

C$.(1$ point$)$ What is the remaining Ioan balance after making the first monthly payment?

Note: Show your calculation steps briefly and clearly.

Note: Attaching Excel spreadsheets or screenshots will NOT be accepted.

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$12$ pt $vv$ Paragraph

EAR$=(1+0\mathrm{.}07,12{)}^{12}-1=0\mathrm{.}0744$ or $7\mathrm{.}44\%$

PMT $,$