A Wartburg engineering student has been out of school and working for a few years when they decide to buy a house that costs $233,000. They intend to pay a down payment of 20% and finance the rest at 5.75% per year compounded monthly on a 30-year mortgage. Inflation is expected to average 4% per year over the lifetime of the mortgage.
What is the monthly payment on the mortgage? $
What is the inflation-adjusted present worth of this transaction? $