Problem 1: The Zambrano family bought a house for $91,000. They paid $20,000 down and took out a 30-year mortgage for the balance at 9%.
a. Find their monthly payment.
b. How much of the first payment is interest?
Problem 2: After 180 payments, the family sells its house for $136,000. They must pay closing costs of $3700 plus 2.5% of the sale price.
a. Estimate the current mortgage balance at the time of the sale
b. Find the total closing costs.
c. Find the amount of money they receive from the sale after paying off the mortgage.