Suppose that you take out a 30-year mortgage loan of $200,000 at an interest rate of 10%.

1. What is your total monthly payment?

2. How much of the first months payment goes to reduce the size of the loan?

3. If you can afford to pay $2,000 per month, how long would it take you to pay

   for this loan (still at 10% interest)?

4. If you can only pay $1,700 per month, and still want to finish paying in 30

5. years, what is the highest (annual) interest rate that you could pay?