Your bank agreed to offer you a mortgage of $100,000, payable monthly over 15 year period, with an APR of 9% and 1.2 points. (Note that most mortgages are ordinary annuities, i.e., the payments are made at the end of each month and the first payment will be due in one month)

What will be your monthly payment?

What is the mortgage EAIR?

If after 10 years you wish to pay back the loan, what is the principal amount you have to pay?

Using Excel Formulas.

A MORTGAGE WITH POINTS
Mortgage principal	100,000
"Points"	1.20%
APR	9%
Monthly interest	0.75%	<-- =B4/12
Mortgage term (years)	15
Mortgage term (months)	180
	Show your calculations
Monthly payment
Monthly interest (Rate function)
EAIR
Principal after 10 years