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Julie has returned from her overseas posting and taken a total of $30,000 in savings and used it for a down payment on a house. The house cost $285,000, so the remaining $255,000 will be financed through a mortgage (loan) with her bank. She will be making bi-weekly payments over 25 years at 3.25% to pay off the mortgage.
a. Calculate Julie’s bi-weekly mortgage payment.
b. Of her 1st payment to the bank, how much will go to pay interest on the mortgage and how much will go towards paying down the loan? c.[6 points] What will be the total interest paid over the 25 years?
d. The mortgage will come up for renewal in 5 years. How much will she owe at that time?
e. Over the 1st five years, how much interest has she paid and how much has she paid on the mortgage?
f. Julie would like to pay off the mortgage in less than 25 years and has determined that she can afford to pay $700 bi-weekly (this should be larger than the amount you found in part a above). How long will it take Julie to pay off the mortgage. Find your answer algebraically, not simply with Goal Seek.