E. You plan to purchase a $175,000 house using a 15-year mortgage obtained from your local bank. The mortgage rate offered to you is 7.75 percent. You will make a down payment of 20 percent of the purchase price. 3. Calculate your monthly payments on this mortgage. b. Calculate the amount of interest and, separately, principal paid in the 60th payment. 6. Calculate the amount of interest and, separately, principal paid in the 180th payment. (1. Calculate the amount of interest paid over the life of this mortgage. 5. [refer to slide #8 8: 9] You will make a down payment of 20 percent of the purchase price, or you will make a down payment of $35,000 [0.20 3; $175,000) at closing and borrow $140,000 through the mortgage. a. For your mortgage: PMT{[1 - [1,?[1 + 0.0775712]15E131]]/[0.0775/12]} : $140,000 or PMT = $140,000/{[1 - [1/(1 + o.o775/12)15(121)]1{0.0775713} therefore PMT = $140,000/1062388 2 511,3 17.79 Thus, your monthly payment is $1,317.79. b. The 60th payment of$1,317.79 is split as follows: $71 3.07 to interest and $604.72 to principal. e. The 180th navment nf$131 7.79 is snlit as follows: $8.46 to interest and $1309.33 to nrincinal