You pay $1045 at the beginning of each month for rent. Instead, you are going to purchase a house. You are going to make a 8% down payment and the remainder will be paid through a 25 year mortgage with payments made at the beginning of each month. You may assume 6.35% compounded semi-annually as the rate of interest.

1.What is the monthly compounded rate of interest that is equivalent to 6.35% compounded semi-annually?

2.How much money must you borrow for your mortgage?

3.What did you pay for your house?