Your local bank has offered you a 20-year, $100,000 mortgage. The bank is charging 1.5 points,...

  

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Your local bank has offered you a 20-year, $100,000 mortgage. The bank is charging 1.5 points, with "processing" costs of $750; both points and processing costs are deducted from the mortgage when it is given. The mortgage carries a 10% annual interest rate and is paid in 20 equal annual payments. Note that the annual payments on the mortgage are calculated on the full amount of the mortgage (that is, $100,000). (10 points) a. Calculate the annual mortgage payment. b. Calculate the EAIR. c. Present an amortization table which shows the amount of effective interest payment and repayment of principal each year. Your local bank has offered you a 20-year, $100,000 mortgage. The bank is charging 1.5 points, with "processing" costs of $750; both points and processing costs are deducted from the mortgage when it is given. The mortgage carries a 10% annual interest rate and is paid in 20 equal annual payments. Note that the annual payments on the mortgage are calculated on the full amount of the mortgage (that is, $100,000). (10 points) a. Calculate the annual mortgage payment. b. Calculate the EAIR. c. Present an amortization table which shows the amount of effective interest payment and repayment of principal each year.