You are considering the purchase of a single-family house in Riverside County. The full price of the house (including all fees) is $500,000. You have an option of putting a down payment of $100,000, and borrow the rest from a bank, who offers a 6% annual interest rate fixed for the next 30 years, based on your credit history. What is the expected monthly mortgage payments, if you choose this option to purchase the house? To answer this question, we need to understand that 1) the actual amount of borrowing is $ 2) since we are calculating monthly payments, the number of period in monthly frequency is 3) and hence our EFFECTIVE discount rate should also be converted to a monthly basis, which equals Given everything we know, our monthly payment should be around \$