Part 1. Saving for down payment

You decide to pay $155 monthly into an annuity from your monthly paycheck. The annuity compounds interest monthly at the rate of 4.5%. Over 5 years , how much will you save in this way toward the down payment for your house?

The amount you saved for down payment is / round to one dollar/ _________

Part 2 . Mortgage

You meet with the loan officer at your credit union. she assures you that you can secure a 30-year mortgage from the credit union at a 3.2% interest rate if you make a down payment of at least 10% of the price of your house.

Use the down payment amount you calculate in part 1 to determine the highest mortgage amount your credit union will approve for you:

a) If the mount you saved is 10% of the selling price, then what is the selling price__________

b) What is the mortgage amount you need to borrow from your credit union__________

c) Calculate the monthly payment on that mortgage amount ____________