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THE FOLLOWING DATA APPLY TO THE NEXT FOUR PROBLEMS The Johnson family is interested in...

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THE FOLLOWING DATA APPLY TO THE NEXT FOUR PROBLEMS The Johnson family is interested in buying a home. The family is applying for a $200,00030-year mortgage. Under the terms of the mortgage, they will receive $200,000 today to help purchase their home. The loan will be fully amortized over the next 30 years. Current mortgage rates are 7.5 percent. Interest is compounded monthly and all payments are due at the end of the month. 23. What is the monthly mortgage payment? a. $989.66 b. $1,047.50 c. $1,111.25 d. $1,398.43 e. $1,563.97 24. What portion of the mortgage payments during the first year will go toward interest? a. 89% b. 100% c. 75% d. 65% e. 95% 25. What will be the remaining balance on the mortgage after five years? a. $73,141 b. $166,752 c. $189,235 d. $195,750 e. $190,433 26. How much could the Johnsons borrow today if they were willing to have a $1,800 monthly mortgage payment? (Assume that the interest rate and the length of the loan remain the same.) a. $225,557 b. $257,432 c. $210,333 d. $244,125 e. $253,456

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