1. [14 pts] A fully amortizing CPM for $100,000 at 8% is calculated

The amount requested = Purchase price x Loan (%) = $105,000 x 0.8 = $84,000

Add the charges associated with obtaining a loan.

The total amount requested plus fees = $84,000 + $3,500 = $87,000.

We can now calculate the amount of money John will receive from his lender.

Total Disbursed by Lender= (Total Amount Requested – Fees) ÷ 1-(MEY x # Of Years/12)^{(1)}

= ($87,500 – 3 , 500) / 1- (0.12 *30/12 )

= $(84 , 000 / 0.88)

= $95 , 455 .45

According to this calculation, the total amount of money that would have been disbursed at closing by the lender is approximately $95,455.45.^{(2)}. This will be the total of both principal payments and interest, which fluctuate with time according to market rates.^{(3)}. This calculation excludes any other fees or expenses associated with getting a mortgage, such as title insurance or appraisal costs. It is important that borrowers research their potential loans thoroughly before they commit funds to ensure they know exactly what their responsibilities are when their mortgage period ends.^{(4)}.