Suggest using BA$-$II$+$ or TI$-83/83$ TVM functions.

N $=\_\_\_\_\_$ I$/$Y $=\_\_\_\_\_\_$ PV $=\_\_\_\_\_\_\_\_\_$ PMT $=\_\_\_\_\_\_\_\_$ FV $=\_\_\_0\_\_$

P$/$Y $=12$

$1.$ Calculate the original loan size of a fixed$-$payment mortgage if the monthly payment is $$1,146\mathrm{.}78,$ the annual interest is $8\mathrm{.}0\%,$ and the original loan term is $15$ years.

$2.$ For a loan of $$100,000,$ at $7$ percent annual interest for $30$ years, find the balance at the end of $4$ years and $15$ years assuming monthly payments.

$3.$ Give some examples of up$-$front financing costs associated with residential mortgages. What rule can one apply to determine if a settlement $($closing$)$ cost should be included in the calculation of the effective borrowing costs?

$4.$ A homeowner is attempting to decide between a $15-$year mortgage loan at $5\mathrm{.}5$ percent and a $30-$year loan at $5\mathrm{.}90$ percent. Assume the up$-$front costs of the two alternatives are equal. What would you advise? What would you advise if the borrower also has a large amount of credit card debt outstanding at a rate of $15$ percent?

$5.$ Assume the following:

Loan Amount: $$100,000$

Interest rate: $10$ percent annually

Term: $15$ years, monthly payments

a$.$ What is the monthly payment?

b$.$ What will be the loan balance at the end of nine years?

c$.$ What is the effective borrowing cost on the loan if the lender charges $3$ points at origination and the loan goes to maturity?

d$.$ What is the effective borrowing cost on the loan if the lender charges $3$ points at origination and the loan is prepaid at the end of year $9?$