Mr. and Mrs. Ostedt have just purchased an $400,000 home and made a 25% down payment. The balance can be amortized at 10% for 25 years.

(a) What are the monthly payments?

(b) How much interest will be paid?

(c) What is their equity after 5 years?

(d) What portion of the mortgage payments made during the third year will go toward interest?

(e) What will be the remaining balance on the mortgage after 5 years?