You plan to purchase a 175000 house using a 15 year


You plan to purchase a $175,000 house using a 15 year mortgage obtained from a local bank. The mortgage rate offered to you is 7.75%. You will make a down payment of 20% of the purchase price. If the monthly payments of the mortgage are $1,317.79:

A) Calculate the amount of interest and, separately, principal paid in the 60th payment.

B) Calculate the amount of interest and, separately, principal paid in the 180th payment.

C) Calculate the amount of interest paid over the life of the mortgage.

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Financial Management: You plan to purchase a 175000 house using a 15 year
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