Problem: You hope to buy your dream house three years from now. Today your dream house costs $329,500. You expect housing prices to rise an average of 3.25% per year over the next three years. You hope to purchase the house by putting down 20% of the purchase price, and by financing the balance using a 30 year, 6.06%, fixed-rate mortgage, with monthly compounding. How much will your dream house cost by the time you are ready to buy it, and what will be your monthly mortgage payment.