A couple nearing retirement wishes to purchase a new home costing \($750\),000, make a 20 percent down payment, and finance the remaining \($600\),000. The conventional 15-year loan rate is 5.6250 percent with 3 points and \($15\),974 in other closing costs. Points are applied to other closing costs, too.

a. What is the amount of the monthly payment if the points and other closing costs are not added to the loan?

Calculate this using both Excel® and one of the Web-based calculators.

b. What is the amount of the monthly payment if the points and other closing costs are added to the loan?

Calculate this using both Excel® 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, including points and other closing costs.

d. Determine the effective annual interest rate for the loan with points and other closing costs added to it.

e. Use the additive approach to determine the APR using both Excel® and one of the Webbased calculators.