1. An investor wants to save for 5 years for a down payment on a house. She deposits $200 per month into her savings account paying 7% compound monthly. At the end of the 5 years, she places the balance of the savings account as a down payment on a house costing $79,308. What will her monthly house payments be if she finances it for 25 years at 7%? ( Is it $459.33 ? )
2. what is the annual debt service on a 1.2 million 30 year mortgage at 6.75% interest with monthly payments? ( Is it $94,286 ? )
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3. Find the balance on this loan at the end of 6 years: $250,000, 20 years, 3.5 percent. ( Is it 192,094.89 ?)