Kyle and Caroline would like to buy a home. However, they live in California, just outside of San Francisco so houses are VERY expensive. They think they can find a decent house for about $800,000. To purchase the home they need 20% of the cost of the home as a down payment and the rest they will take out a mortgage loan. Kyle has decided he can save $350 a month from his current paycheck and Caroline can say $400 a month from her paycheck. They will put their savings into an account that earns 3% compounded monthly.

a)How many years will they need to save to be able to purchase an $800,000 home?

b)Once they purchase the home, what is their mortgage payment on a 30-year mortgage assuming the interest on the mortgage is 3.25% compounded monthly?