1. Time-Value of Money and NPV (25 points) a) You and your spouse are thinking about buying a house. The total cost is $175,000 You plan on paying for 20% or $35,000 of the cost upfront to avoid PMI. The bank will lend you the rest of the money at 7.50% for a 30 -year loan. If you borrow the money, what will your monthly payment be? 1. Time-Value of Money and NPV (25 points) a) You and your spouse are thinking about buying a house. The total cost is $175,000 You plan on paying for 20% or $35,000 of the cost upfront to avoid PMI. The bank will lend you the rest of the money at 7.50% for a 30 -year loan. If you borrow the money, what will your monthly payment be