For this Discussion Topic, you are only required to post a Response for credit, but relevant replies (discussion) are encouraged.

Sally has questions about the real, total costs associated with buying her first house.Answer Sally's questions by going to Module B, opening the Power Point for Chapter 9, and go to the last 2 slides.

Sally bought her first house.The price was $200,000.She paid a down payment of 10% - $20,000.

The remainder of the purchase price was paid with a bank loan of $180,000.The terms of the loan were 5% annual interest, fixed for 30 years.The monthly principal and interest payment on this loan is $966.66.(Monthly insurance and tax payments are not included in this payment).

She has a few questions:

1)How much of her first payment goes to pay down the debt?

2)How much will she pay for the home in total?

3)How much interest will she pay over the loan?

In your response state:

First:Answer Sally's questions by finding the answers on the last 2 Power Point slides for Chapter 9 in Module B.

Second:Are you at all surprisedby the answers?Should a business ask these kinds of questions before purchasing equipment or real property for the business? Why?

A Mortgage

(1) $966.60 payment - $750 (interest) =

$216.66 debt reduction

(2) $966.60 X 360 months = $347,976 + $20,000 down =

$376,976 total paid

(3) $376,976 total - $200,000 purchase price =

$167,976 total interest