You would like to purchase a townhouse but would need to borrow $250,000 at 4% interest on a 30-year loan. The estimated annual property taxes would be $1600 and the estimated home insurance would be $800 annually. The townhouse association fee each month is $600. a) What is the monthly payment on principal and interest (just the mortgage payment)? Show all work for full credit.

b) Given all monthly expenses, what is the total monthly cost of the townhouse? Show all the work for full credit.