Question: You plan to purchase a $175,000 house using a 15-year mortgage obtained from your local bank. The mortgage rate offered to you is 7.75 percent. You will make a down payment of 20 percent of the purchase price.
a. Calculate your monthly payments on this mortgage.
b. Calculate the amount of interest and, separately, principal paid in the 60th payment.
c. Calculate the amount of interest and, separately, principal paid in the 180th payment.
d. Calculate the amount of interest paid over the life of this mortgage.