Let's break down the problem step by step: --- ### **Step 1: Find the loan amount** Joe put down 25% on a $147,000 house. - **Down payment:** = 25% × $147,000 = 0.25 × $147,000 = $36,750 - **Loan amount:** = $147,000 - $36,750 = $110,250 --- ### **Step 2: Find the monthly payment using the amortization table** - **Table info:** For a 30-year mortgage at 6%, the amortization table value is **$6.00 per $1,000**. - **Number of $1,000s in loan:** = $110,250 ÷ $1,000 = 110.25 - **Monthly payment:** = 110.25 × $6.00 = $661.50 --- ### **Step 3: Find the total interest cost** - **Total amount paid over 30 years:** = Monthly payment × 12 months × 30 years = $661.50 × 12 × 30 = $661.50 × 360 = $238,140.00 - **Total interest paid:** = Total paid - Principal = $238,140.00 - $110,250 = $127,890.00 --- ## **Answers:** ### **a. Joe’s monthly payment:** **$661.50** ### **b. Total interest cost of the loan:** **$127,890.00** Let me know if you need any more explanation!