***CAN YOU PLEASE EXPLAIN HOW TO SOLVE USING THE HP 10bII+ FINANCIAL CALCULATOR?***

Use the following information for the next 5 questions. Rich wants to obtain a 175,000 mortgage. His lender is willing to offer him a 20 year mortgage with a note rate of 5.25%, but the lender requires a yield of 6%.

15. How much will Richs monthly payment be? A) 1,037.31 B) 1,179.23 C) 1,276.38 D) 1,729.63

16. Assuming the lender believes Rich will keep this mortgage for the full 20 years, what net loan procedes will Rich receive? A) 164,597.46 B) 166,626.18 C) 172,008.86 D) 175,000.00

17. What FTLAPR will be reported to Rich? A) 5.875% B) 6.000% C) 6.125% D) 6.250%

18. Assuming the lender believes Rich will keep this mortgage for only 10 years, what net loan procedes will Rich receive? A) 164,597.46 B) 166,626.18 C) 172,008.86 D) 175,000.00

19. For the above situation, what FTLAPR will be reported to Rich? A) 5.875% B) 6.000% C) 6.125% D) 6.250%