Heather McIntosh of Watertown, South Dakota, recently purchased a home for $185,000. She put $35,000 down and took out a 25-year loan at 3.0 percent interest. Round your answers to the nearest cent.

1. Use Table 9-4 to determine her monthly payment. Round Estimating Mortgage Loan Payments for Principal and Interest in your intermediate calculations to four decimal places.

   $

2. How much of her first payment will go toward interest and principal?

   Interest will be $

   Principal will be $

   How much will she owe after that first month? (Hint: Use the logic of Table 9-2.)

   $

3. How much will she owe after three months? Do not round intermediate calculations. (Hint: Use the logic of Table 9-2.)

   $