Say that you purchase a house for $$230,000$ by getting a mortgage for $$205,000$ and paying a $$25,000$ down payment. If you get a $25-$year mortgage with an interest rate of $8$ percent, what are the monthly payments?

What would the loan balance be in ten years?

If the house appreciates at $4$ percent per year, what will be the value of the house in ten years?

How much of this value is your equity?

Note: Do not round intermediate calculations and round your final answer to $2$ decimal places.