1. Ms. Rowel would like to buy a house costing $190000. She is required to make a down payment equal to 10% of the value of the house and then borrow the balance from a bank that charges interest at an annual rate of 4.2% compounded monthly. The bank loan has to be paid off with equal monthly payments, (paid at the end of each month), in 30 years. Assume that she will get the loan at the beginning of a month and start making monthly payments on the last day of each month until the loan is paid off (a) How much money will she have to borrow from the bank, (after making the down payment)? (b) What is the monthly interest rate charged by the bank? (c) What is the future value of Ms. Rowel s loan 30 years from the time she gets it? (d) How many monthly payments will Ms. Rowel make in 30 years? (e) At the moment, we do not know the amount of money she will have to pay per month. Let it be P dollars. What is the future value of the monthly payments she will make, 30 years from the day she makes the first payment? (f) The future value of all Ms. Rowel s payments should equal the future value of the loan she gets from the bank. Use this information to form an equation involving P then solve it. You must write down your work. Round of the value you get for P to the nearest dollar. (g) What is the total amount of money Ms. Rowel will pay over the 30 years? Use it to calculate the total amount of interest she will pay over the 30 years. (h) What will be her monthly payments if she chooses to pay off the loan in 15 years instead of 30 years and how much money will she save in interest payments? Show your work leading to your answers.