An environmental engineer 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 15-year loan is 5.5 percent interest with 2.625 points (applied to only the \($190\),000) and \($6\),444.50 in other closing costs.

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 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 closing costs added to it.

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