The following information relates to the next 7 questions: You wish to buy a new house and can afford to put $30K of your own money for a deposit.

78. You have found an ideal house cost $280K. Thus, you will need to borrow $250K using a 30-year fixed mortgage offered at an APR of 3.6%. What are the monthly payments?

79. Over the life of the mortgage, how much interest do you pay?

80. If you make the first 12 payments, how much do you owe at the end of the first year (what is the remaining balance)?

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81. During this first year, how much interest do you pay?

82. Ten years have passed and you have made all the required payments. At this time, you now owe an outstanding balance of $194,256 (calculated using R=.003, N=240, PMT=-1136.61, FV=0, solve PV=194256). You have been promoted and can afford to increase your monthly payments from $1,136.61 to $1,500. How many months earlier will you pay off the mortgage?

83. Everything progresses as planned, you make the new increased payments of $1,500 for the next 5 years how much is owed at the end of this period (15 years left on the original 30-yearmortgage)?

84. You have 15 years left, and owe $134,056. YOU are still required to make the original contractual payments of $1,136.61. You have shopped around at various banks, and although 30-year fixed mortgages are still priced at an APR of 3.6% approximately (the rate you are still paying), 15-year fixed mortgages are offered at 2.8% APR. If you refinance your mortgage, with a new 15-year mortgage, at an APR of 2.8%, and keep your payments at $1,136.61, when will you pay off the mortgage? (Ignore points and other refinancing costs.)