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Client #9 Ingrid is buying a house selling for $345,000. She is coming to your...

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Accounting

Client #9

Ingrid is buying a house selling for $345,000. She is coming to your bank for a 20-year mortgage. Your bank is offering a 3.95% interest rate but requires a 15% down payment and charges 1.25 points.

  1. (3 pt) Determine the amount of the required down payment. Show all steps. Write the answer in a complete sentence.

  1. (2 pt) Determine the amount of the loan. Show all steps. Write the answer in a complete sentence.

  1. (3 pt) Determine the amount Ingrid will have to pay for points. Show all steps. Write the answer in a complete sentence.

  1. (5 pt) Determine Ingrids monthly payment (principal and interest). Write out 1) the correct formula with variables (e.g. P0, PN, N, r, etc.), and 2) the correct formula with the numerical values (round your answer to the nearest cent, 3) write the answer in a complete sentence.

  1. (5 pt) How much will Ingrid pay total, at the end of the 20 years? Show all steps. Write the answer in a complete sentenc

  1. (4 pt) How much of that total is interest?

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