Your bank has pre-approved a mortgage for the purchase of a home. The bank calculates that you can make monthly payments of up to 40% of your salary, which is $78,000 annually. The bank charges a 1.5% closing fee on the mortgage which must be paid up-front (when the mortgage closes). The interest rate quoted on the mortgage is 6.60% per annum for a 25-year loan. 

a. Up to what net amount will the bank lend you? 

b. The APR of this loan is 6.60%, but what is the effective annual rate (EAR)? 

c. How much will still be due after 3 years?