A home mortgage with monthly payments for 30years is

Chapter , Problem 7-49

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A home mortgage with monthly payments for 30years is available at 6% interest. The home you arebuying costs $120,000, and you have saved $12,000to meet the requirement for a 10% down payment.The lender charges points of 2% of the loan valueas a loan origination and processing fee. This fee isadded to the initial balance of the loan.(a)What is your monthly payment?(b)If you keep the mortgage until it is paid off in 30years, what is your effective annual interest rate?(c)If you move to a larger house in 10 years and payoff the loan, what is your effective annualinterestrate?(d)If you are transferred in 3 years and pay offthe loan, what is your effective annual interestrate?

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