Determine the maximum number of points you would be willing to pay upfront to buy down the interest rate on a 30-year fixed-rate mortgage with a specific loan amount and monthly payments. Compare the mortgage options with their respective annual percentage rates, keeping in mind that a point on a loan is 1 percent of the loan value.

Determine the maximum number of points you would be willing to pay up front to buy down the interest rate on a 30-year fixed-rate mortgage with a specific loan amount and monthly payments, considering that you plan to live in the house for a certain number of years before selling it and paying off the remaining balance. Compare the mortgage options with their respective annual percentage rates, keeping in mind that a point on a loan is 1 percent of the loan value.

calculate the effective annual rates (EARs) and annual percentage rates (APRs) for two 30-year mortgages with the same loan amount and interest rate from two different banks, both charging a loan application fee. One bank refunds the application fee if the loan application is denied, while the other does not. Consider the impact of the refundable and nonrefundable fees on the calculation of the APRs as per the current disclosure law. Find the APR and EAR on both loans.

Analyze a loan offer advertised with “instant credit,” a simple interest rate, a repayment period, and “low, low monthly payments,” illustrating a deceptive way of quoting interest rates called add-on interest. Calculate the annual percentage rate (APR) and effective annual rate (EAR) for this loan, considering the total amount owed after the repayment period and the equal monthly payments.

Evaluate the value of an insurance policy at the child’s 65th birthday, where a parent or grandparent makes six payments on the child’s first six birthdays. After the sixth birthday, no more payments are made, and the child receives a specific amount at age 65. Consider different interest rates for the first six years and all subsequent years.

Determine the rate of return for a college savings program, where you make a series of annual payments starting on your child’s current birthday. After a specific number of years, the plan provides a certain annual amount for a specified duration. Calculate the implied return on this investment.