You buy a house; your mortgage is $200,000. The mortgage is payable monthly over a 30 year period. Your banker quotes an annual interest rate of 6%.

a. Calculate the amount of the monthly payment

b. Assume you make your monthly payments for 10 years, and you want to sell your house. How much do you owe on your mortgage after 10 years?

c. Let 's go back to part (a) of this problem for a moment. Suppose you had to pay one point for the mortgage. What is the APR that is implicit in your mortgage?