Business, 14.02.2020 03:05, nayellisoto15

A two-executive professional couple wishes to purchase a new home costing $750,000, make a 20 percent down payment, and finance the remaining $600,000. The rate quoted for a conventional 30-year loan is 6 percent interest with 3.125 points (applied to only the $600,000) and $16,159 in other closing costs. a. What is the amount of the monthly payment if the points and other costs at closing are not added to the loan? Calculate this using both Excel1 and one of the Web-based calculators. b. What is the amount of the monthly payment if the points are added to the loan? Calculate this using both Excel1 and one of the Web-based calculators. c. If, immediately after the one hundred twentieth payment (10 years), the professional couple decides to sell the house, what will be the unpaid balance on the loan with the points added to it?d. Determine the effective annual interest rate for the loan with points added to it. e. Use the additive approach to determine the APR (see Example 3.6 ) using both Excel1 and one of the Webbased calculators.

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A two-executive professional couple wishes to purchase a new home costing $750,000, make a 20 percen...