The bank is charging 15 points and processing costs of 750


Your local bank has offered you a 20-year, $100,000 mortgage. The bank is charging 1.5 points and "processing" costs of $750; both points and processing costs are deducted from the mortgage when it is given.

Payments on the mortgage are annual and are based on a 10% interest rate on the full amount of the mortgage (that is, $100,000).

a. Calculate the annual mortgage payment.

b. Calculate the EAIR.

c. Compute an amortization table that shows the amount of interest you can report for taxes each year.

please answer the question using excel.

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Financial Management: The bank is charging 15 points and processing costs of 750
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