A couple, Meghan and Harry, are going to buy a house priced at $588,000. They are getting a 30-year mortgage that has an interest rate of 4.22%. To get this loan, they will need 15% down payment. The bank is charging them 1.5 points.

Part a) (3 pts) How much will the down payment be?

• Write out...
• 1) your work (round your answer to the nearest cent), and
• 2) write the answer in a complete sentence.

Part b) (3 pts) How much money will Meghan and Harry need to borrow?

• Write out...
• 1) your work (round your answer to the nearest cent), and
• 2) write the answer in a complete sentence.

Part c) (5 pts) What is their monthly payment going to be, in order to repay the principle and interest?

• Write out
  • 1) the correct formula with variables (e.g. P₀, P_N, N, r, etc.), and
  • 2) the correct formula with the numerical values (round your answer to the nearest cent), and
  • 3) write the answer in a complete sentence.

Part d) (3 pts) What is the cost of the 1.5 points?

• Write out...
• 1) your work (round your answer to the nearest cent), and
• 2) write the answer in a complete sentence.

Part e) (5 pts) How much will they pay in total at the end of the 30 years?

• Write out...
• 1) your work (round your answer to the nearest cent), and
• 2) write the answer in a complete sentence.

Part f) (3 pts) How much of that total is interest?

• Write out...
• 1) your work (round your answer to the nearest cent), and
• 2) write the answer in a complete sentence.