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1. Compute the required monthly payment on a $200,000, 30-year fixed-rate mortgage with a nominal...

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1. Compute the required monthly payment on a $200,000, 30-year fixed-rate mortgage with a nominal interest rate of 5% 2. Consider a 25-year fixed-rate mortgage for $600,000 at a nominal rate of 10%. What is the difference in required payments between a monthly payment and a bimonthly payment (payments made twice a month)? Discount Points 1 3. Consider the following options available to a mortgage borrower: Loan Amount Interest Rate (%) Type of Mortgage Option 1 S150,000 6.35 30-year fixed Option 2 $120,000 6.42 30-year fixed Option 3 $145,000 30-year fixed What is the effective annual rate for each option? 2 6.05 3 4. Consider a 25-year fixed-rate mortgage for $250,000 at a nominal rate of 8%. If the borrower pays an additional $500 with each payment, how fast will the mortgage be paid off

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