Problem 1: Mr. and Mrs. Zagorin plan to buy a small, unfinished one-room cabin for $90,000, paying 20% down and financing the balance at 5.5%, for 30 years. The taxes are $960 per year, with fire insurance costing $352 per year. Find the monthly payment (including taxes and insurance).
Problem 2: Billiards Galore purchases a commercial building for $680,000, pays 20% down, and finances the balance at 7% for 15 years. Taxes and insurance are $14,500 and $3200 per year, respectively.
(a) Find the monthly payment.
(b) Assume that insurance and taxes do not increase, and find the total cost of owning the building for 15 years, including the down payment.
Problem 3: Jerome Watson, owner of Watson Welding, has a metal building built for his business and makes a $25,000 down payment. He finances the balance of $122,500 for 20 years at 8%.
(a) Find the total monthly payment given taxes of $3200 per year and insurance of $1275 per year.
(b) Assume that insurance and taxes do not increase, and find the total cost of owning the building for 20 years (including the down payment).