### Monthly Payment, Inflation Rate, After-Tax Rate

1. If Bank One is offering a 30 year mortgage with and EAR of 5 3/8 %. If you plan to borrow $150,000, what will your monthly payment be? 2. If the rate of inflation of 5%, what nominal interest rate is necessary for you to earn a 3% real interest rate on your investment? 3. Your best taxable investment opportunity has an EAR