Question: Problem 3 (20 marks) You are considering buying an apartment listed for $350,000. Assume that the bank offers you a mortgage rate of 0.25% per

Problem 3 (20 marks) You are considering buying an apartment listed

Problem 3 (20 marks) You are considering buying an apartment listed for $350,000. Assume that the bank offers you a mortgage rate of 0.25% per month and that you just have the 10% (of the price of the apartment) required for the down payment to qualify for the mortgage. a) What is the quoted mortgage rate (i.e., APR)? b) What is the effective annual rate (EAR) of interest that you will pay under the terms of thi mortgage? =) Assuming that the mortgage rate is fixed for a period of 10 years. What will your mont Mortgage payment be if you want to pay your mortgage in 10 years? y much interest will you pay in total over the life of the mortgage

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