# Exam2 - Your local bank has offered you a 20-year \$200,000...

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Part A. Calculate the monthly mortgage payment A MORTGAGE WITH ORIGINATION FEE Mortgage principal 200,000 Quoted annual interest rate 12.00% Origination fee 0.80% Point 1% Mortgage term (years) 20 Semiannual Mortgage Payment -\$13,292.31 Semiannual IRR 6.08% EAIR 12.53% Part C. Show the mortgage amortization table for the first 2 years Semiannual 1 198,000.00 2 196,746.11 3 195,415.99 4 194,005.00 5 192,508.21 6 190,920.43 7 189,236.10 8 187,449.37 9 185,554.00 10 183,543.40 11 181,410.55 12 179,148.02 13 176,747.93 14 174,201.92 15 171,501.11 16 168,636.08 17 165,596.87 18 162,372.87 19 158,952.85 20 155,324.89 21 151,476.35 22 147,393.82 Your local bank has offered you a 20-year, \$200,000 mortgag. The bank is charging 1 mortgage are semiannually and are based on a 12% annual interest rate on the full Part B. Calculate monthly IRR and EAIR. To find out the monthly IRR, you can either u the latter method, create the table in the space below Part C. Mortgage principal at beginning of each period

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23 143,063.08 24 138,469.02 25 133,595.64 26 128,425.96 27 122,941.97 28 117,124.55 29 110,953.42 30 104,407.10 31 97,462.75 32 90,096.19 33 82,281.74 34 73,992.17 35 65,198.60 36 55,870.37 37 45,974.99 38 35,477.96 39 24,342.72 40 12,530.45
-13,292.31 -12,038.42 -13,292.31 -11,962.18 -13,292.31 -11,881.31 -13,292.31 -11,795.52 -13,292.31 -11,704.52 -13,292.31 -11,607.98 -13,292.31 -11,505.57 -13,292.31 -11,396.94 -13,292.31 -11,281.70 -13,292.31 -11,159.46 -13,292.31 -11,029.78 -13,292.31 -10,892.22 -13,292.31 -10,746.29 -13,292.31 -10,591.49 -13,292.31 -10,427.29 -13,292.31 -10,253.09 -13,292.31 -10,068.31 -13,292.31 -9,872.29 -13,292.31 -9,664.35 -13,292.31 -9,443.77 -13,292.31 -9,209.78 -13,292.31 -8,961.56 1 point and 0.8% origination fee when the loan is given. Payments on the l amount of the mortgage.

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