The Fritzes are buying a house that sells for $85,000. The bank is requiring a minimum down payment of 20%. To obtain a 25-year mortgage at 8.0% interest, they must pay 2 points at the time of closing.

a) Determine the required down payment.

b) Determine the amount of the mortgage on the property with the 20% down payment.

c) Find the cost of 2 points on the mortgage.