You are buying your first condo for $220,000 and are making a $20,000 down payment. You have arranged to finance the remaining amount with a 30-year monthly payment amortized mortgage at a 5.75% nominal interest rate. What will your monthly payments be?

a. $1,167.15

b. $1,900.88

c. $1,200.93

d. $1,962.70

e. $1,324.02

f. $2,100.04

What is the estimated payoff on the mortgage question above after you have paid for 10 years? Show how you obtained the mortgage balance using Excel and the balance.

What is the first 12 months mortgage interest that you can deduct from your taxes according to IRS? Show how you obtained the mortgage interest deduction using Excel and the answer.