1) You have decided that you want to buy a home in 6 years. You believe you can afford a house that is $190,000.

a) If you want to have 20% for a down payment, how much will you need to have for the down payment?

b) You decide to start investing money now so that you will have the down payment in 6 years when you are ready to purchase the home. How much should you put into a mutual fund each month if you know you can earn 5.5%?

c) The day has finally arrived. You have saved your down payment, and are ready to purchase your $190,000 home. How much money will you be taking as a loan?

d) What would the monthly mortgage payment be if your loan was a 1.7% 30-year fixed mortgage?