Question: Problem 3. Mortgage with points and processing costs. Please fill in the cells highlighted in GREEN Your local bank has offered you a 5-year, $100,000

Problem 3. Mortgage with points and processing costs. Please fill in

Problem 3. Mortgage with points and processing costs. Please fill in the cells highlighted in GREEN Your local bank has offered you a 5-year, $100,000 mortgage. The bank is charging 1.2 points, and the processing fee to be paid immediately is $600. if the interest rate is 12% annually with one mortgage per year, calculate the EAIR of the loan. Annual interest rate Mortgage term (years) Annual payment Mortgage points Processing costs (S) Net mortgage received Annual IRR (EAIR)

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