1. Present Value of Future Loan Payments: Consider the mortgage loan question of points vs. no points. Use the present value of all future loan payments to compare the two.
2. You have three seperate choices when it comes to a loan of 220,000 dollars for a house you are buying. Choice A: 30 year loan with montlhy payments at an APR of 6.75%. Choice B: 15 year loan with monthly payments at an APR of 6.50% Chocie C: 10 year loan with monthly payments and a balloon payment of 100,000 at an APR of 7%. What is the total amount of interest you would end up paying for each of these three choices, assume you made the payments as agreed.