Problem 1 Home loan - You want to buy a new house. The home costs $250,000, you are required to put 20% down. Payments are made monthly. Find the following. 1. Determine the scheduled payment for the following loan terms a. 30 year loan at 3.5% interest b. 20 year loan at 3.25% interest c. 15 year loan at 3.0% interest 2. Determine the total interest paid over the life of the loan for the following loan terms a. 30 year loan at 3.5% interest b. 20 year loan at 3.25% interest c. 15 year loan at 3.0% interest 3. Apply the 30 year loan at 3.5% interest loan term and find the following a. The cumulative principal and interest paid at months 12, 60, 120, and 180. b. How much interest do you save over the life of the loan if you double the principal payment over: i. the first year of the loan. ii. The first five years of the loan c. For problem 3.b. In how many months will the loan be paid off? d. How fast will you pay off the loan if you add $50 extra principal each month for i. The first 10 years ii. The first 15 years e. How much interest do you save over the life of the loan if you make a one-time additional payment (extra principal) of $1000 at months 1, 60, or 120. f. When will you pay off the loan if you apply an extra payment annually (extra payment applied as principal reduction). i. How much interest does this save over the life of the loan. Problem 2 Buying a new car. The purchase price is $24,550. You decide to put down $3,000. Assume sales tax is 4.5%. The terms of the car loan are 5 years, 4.575% interest, and payments are monthly. There is no penalty for loan pre-payment (principal reduction). Find 1. The monthly payment 2. The total interest paid over the life of the loan 3. The cumulative principal and interest paid at month 27. 4. How much interest do you save over the life of the loan if you double the principal payment over the first year of the loan. 5. For problem 4. In how many months will the loan be paid off? 6. How fast will you pay off the loan if you add $50 extra principal each month for the duration of the loan