(Please show step by step workings)
Maria and John have been married for 2 years and are trying
to start a family.
They have been renting a small apartment and decide they want to purchase a house.
They find one that is selling for $450,000. They have been advised to make a 20% down payment.
1. If they make a 20% down payment on a 20-year mortgage at 3.75%,
a. How much will they need for the down payment?
b. What will be the mortgage amount (ie the principal)
c. How much will their monthly payment be for the principal and interest?
d. How much total interest will they pay if they take the full 20 years to pay off the mortgage?