Mr. & Mrs. Bernard purchased a home for $750,000. They made a 20% down payment, with the balance paid off by a 25-year mortgage at 4.5% compounded monthly.
a) How much is the down payment?
b) How much did they borrow?
c) How much is their payment each month?
d) How much interest is paid the first month?
e) How much of the first month’s payment is applied to paying off the principal?