The Wade family is borrowing $200,000 today to buy a house with a 30-year mortgage.
The loan will be fully amortized over the next 30 years. Current mortgage
rates are 7.5%. Interest is compounded monthly and all payments are due
at the end of the month.
a. What is the monthly mortgage payment?
b. How much would be the interest payment in the first month?
c. What would be the balance at the end of first month?