6. You want to purchase a house that is priced at $85,000. You can get a loan for 80 percent of the banks appraised value at 15.25% interest per year for 30 years with monthly amortization. The banks appraiser has a theory that the value of a house is 95 percent of the asking price and appraises it accordingly. What will be your monthly payment if you take the loan?

7. What would be the balance on the mortgage in Problem #6 after 5 years?

8. Complete the following table for the loan in Problem #6:

Year Balance at End of Year Principal Repaid During Year Total of Annual Loan Payments Interest Paid During the Year