You borrow $100,000 using a 30-year fixed rate mortgage with monthly payments. The stated annual interest rate is 10% with monthly compounding. The first payment is due in one year (i.e., t = 1; today is t = 0).

1. Calculate the monthly payments

2. Calculate the interest for the second payment.

3. Calculate the outstanding balance after making the second payment.

4. Now suppose that the mortgage loan requires an upfront payment (i.e., points) of 1% upon origination of the loan. The mortgage loan payments from question 3 do not change. Calculate the APR for the mortgage.