1. A customer wants to borrow $125,000 to purchase a new home. The APR on this loan is 10 percent and it is a 30-year mortgage with monthly payments. What is the monthly payment the customer will have to make on this loan?
2. A customer is seeking a $150,000 home mortgage. The bank requires the customer to pay 1¾ points up front. How much of the loan amount will actually be available to the customer if the bank approves the loan?
3. Suppose a preferred stock (a perpetuity) that pays a quarterly dividend of 1$ is currently priced at $50. If the next dividend payment is to be made in 3 months, what is this asset’s annual percentage rate(APR)?