Question: A couple has decided to purchase a $240000 house using a down payment of $20000. They can amortize the balance at 12% over 25 years.

A couple has decided to purchase a $240000 house using a down payment of $20000. They can amortize the balance at 12% over 25 years.

a) What is their monthly payment?

Answer = $__________

b) What is the total interest paid?

Answer = $____________

c) How much of their first payment went toward paying interest?

Answer = $___________

d) How much of their first payment went toward paying the balance of the loan.

Answer = $___________

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