Say that you purchase a house for $180,000 by getting a mortgage for $160,000 and paying a $20,000 down payment. If you get a 20-year mortgage with a 8 percent interest rate, what are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
What would the loan balance be in five years? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
If the house appreciates at 2 percent per year, what will be the value of the house in five years? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
How much of this value is your equity? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
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