A couple purchased a house 7 years ago for $375, 000. The house was financed by paying 20% down and signing a 30-year mort- gage at 6.5% on the unpaid balance. The net market value of the house is now $400, 000. Assume that the couple wishes to sell the house.

2.11 Exercises 75

a) How much equity (to the nearest dollar) does the family have in the house now, after making 84 monthly payments?

b) Find the first interest payment I1 and the 84th interest payment I84.