1. Consider a $204,700, 30-year mortgage at interest rate 4.8%, compounded monthly, with a $1073.99 monthly payment?
(a) How much interest is paid the first month?
(b) How much of the first month's payment is applied to paying off the principal?
(c) What is the unpaid balance after 1 month?
2. James buys a house for $370,000. He puts $70,000 down and then finances the rest at 6.3% interest compounded monthly for 25 years.
(a) Find his monthly payment.
(b) Find the total amount he pays for the house.
(c) Find the total amount of interest he pays?