Part 1. Be sure to clearly show all of your steps to each solution and formulas.

You are planning to purchase a house that will require some renovations.

1.You will have a $400,000 mortgage for 20 years at the rate of 4.25%. What will your monthly payment be?

2.If you take the full term of the loan, how much interest will you have paid?

3. You decide to do some remodeling. You are looking at borrowing $7500 at the simple interest rate of 2% per year. You want to pay a maximum of $600 interest. How long will the loan need to be to meet this maximum interest of $600.00?

4. If you decide to put a $3000.00 bonus from your employment in a savings account that pays 2% interest compounded monthly, how much interest would you have earned after 4 years?