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Q(1) ?Horatio needs money to purchase a house. He makes a down payment (in cash) of $25,000 on a $250,000 house. He will borrow the remaining amount ($225,000) from Acme Financial. The loan will be for 30 years, and he will make monthly payments. The interest rate is ¼% per month. What is the amount of Horatio's (uniform) monthly payments?
Q2) ?Acme Financial has decided to offer Horatio a "deal." In this deal Horatio can make interestonly payments for the first three years (that is, he pays only the interest on the loan, like Plan 1 in our Table 41 discussed in the text). This will make it more affordable in the early years for Horatio. After the three years is up, Horatio will need to make regular payments to pay off the loan in the remaining 27 years. What are Horatio's new payments for the remaining 27 years? Assume the interest rate remains the same as in Q1.
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