The Ricordi family has just bought a house for $275,000. They have been saving money for awhile and are able to make a $100,000 down payment. They have chosen a 30-year mortgage from their  bank borrow the balance of the purchase price. The interest rate of the mortgage is 6.5%, compounded
monthly.

d.  What is the balance owing on their loan after 10 years?


e. Over the first 10 years, how much interest is paid and how much is paid on the mortgage?


f. The Ricordi family would like to pay off the mortgage in less than 30 years and has determined  that they can afford to pay $2000 monthly (this should be larger than the amount you found in part a  above). How many years will it take them to pay off the mortgage.