Answer Happy

You have found the first home that you want to purchase
for $180,000. You met with your local bank and you got approved for
a mortgage with the following terms: Interest is fixed at a rate of
4% p.a.; payments need to be made on a monthly basis, with the
first payment due one month after the purchase is finalized; the
bank requires you to make fixed and equal payments for each of the
60 months, after which the mortgage is fully paid off; the bank is
willing to finance 80% of your purchase.
Answer the following questions and please clearly
indicate which answers relate to which question. Please type down
your step-by-step calculation to get partial credits. If you use
formulas or excel functions, please indicate which formulas or
functions you are using and what are your
inputs.
1. What is the dollar amount the
bank is willing to
finance?
2. What is the monthly payment for
this mortgage?
3. What is the total amount of
dollars of interest you are paying over the entire 5-year
period?