Problem:
Jeremy Grey is looking to buy his first home with the help of a mortgage loan. A local bank is willing to lend Jeremy $100,000 at 8% annual interest for 20 years with monthly payments.
Required:
Question 1: How much is each payment
Question 2: How much total interest will Jeremy pay for the 20 year loan?
Question 3: How much interest will Jeremy pay in years 8-12?
Question 4: How much equity is in the house after 10 years?
Question 5: What is Jeremy's loan balance after 15 years?
Note: Provide support for your rationale.