Please help me with the questions below.- Complement

1. Calculate the monthly payment for a 30-year mortgage loan.

2. Calculate the amount of interest that youd pay for a 30-year mortgage loan.

How much interest do you pay over the life of a 30-year mortgage?

To compute the mortgage payments, well need to know a few things:

1. The size of the mortgage loan
2. The interest rate
3. The length of the loan (number of months)

Lets suppose you would like to buy a home for $250,000. But like most U.S. citizens, you dont have enough cash on hand to pay for the full house. But were in luck! Signature Bank has agreed to offer you a 30-year mortgage loan, but requires that you pay 20 percent down ($50,000 = 20% of $250,000) to qualify for their mortgage loan of $200,000 in this way:

$250,000	Cost of home
50,000	Required 20% down payment ($50,000 = 20% of $250,000) (The
	cash you need to have available to pay when closing on the home)
$200,000	Amount of the bank loan

1. What is the amount of interest paid in monthly payment number 25?

a) $974.68 b) $975.80 c) $972.43 d) $973.56

2. What is the amount that goes toward paying down principal in monthly payment number 20? a) $218.89 b) $217.80 c) $219.99 d) $980.21

3. What is the amount of ending principal after the 359^th monthly payment?

a) $1,193.14 b) $0 c) $5.97 d) $2,380.33

4. What is the amount of ending principal after the 360^th monthly payment?

a) $0 b) $1,193.14 c) $5.97 d) $2,380.33

5. What would be the monthly payment for a $200,000 mortgage loan for 360 months, and at 7% annual interest?

a) $1,330.60 b) $1,199.10 c) $14,000.00 d) $1,064.48