Consider a home mortgage problem. The house in question will cost $200,000. The down payment is 20%, or $40,000, which means the loan will be for $160,000. The loan will be a 15-year loan. The annual interest rate (APR) is 3.5%. Payments to the bank are monthly. Address the following:

• Compute the monthly loan payment
• Construct a loan amortization schedule for the life of the loan
• In addition to the monthly loan payments, it is estimated that the following outflows will occur each month: $100 in property tax, $100 in home insurance, and $125 in upkeep and maintenance. Given these estimates, compute the total monthly cash outflow (which should include the monthly loan payment).