A contact engineer in petrochemicals wishes to buy a new home costing \($200\),000, make a 5 percent down payment, and finance the remaining \($190\),000. The rate quoted for a conventional 30-year loan is 5.8750 percent interest with 2.75 points (applied to only the \($190\),000) and \($6\),570 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 Excel® and one of the Web-based calculators.

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

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

c. If, immediately after the sixtieth payment (5 years), the graduate is asked to move, what will be the unpaid balance on the loan with the points and other closing costs added to it?

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

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