The Bells obtain a 30-year, $110,000 conventional mortgage at a 9.0% rate on a house selling for $160,000. Their monthly mortgage payment, including principal and interest, is $885.50. They also pay 2 points at closing.

a) Determine the total amount the Bells will pay for their house.

b) How much of the cost will be interest (including the 2 points)?

c) How much of the first payment on the mortgage is applied to the principal?