# a. Denny and Janice (and their dog Chewy) have just purchased ahouse and are calculating how much mo

a. Denny and Janice (and their dog Chewy) have just purchased ahouse and are calculating how much money they will need when theclosing day rolls around. The purchase price is \$200,000. They willmake a 20% down payment, and they must pay 2 points on the loan.Closing costs should be 3% of the purchase price. What is the totaldollar amount they will need at closing? (Show all work.) b. Benny and Sally want to calculate the difference in monthlypayments on a \$110,000 home as a result of a \$5,000 down payment ora \$10,000 down payment. Use your financial calculator to figure themonthly payments, assuming they get a 6.5%, 30-year mortgage. c. If a lender requires that mortgage payments cannot exceed 30%of gross income and total loan payments cannot exceed 38% of grossincome, calculate the monthly payment for which a person with thefollowing financial data could qualify. Gross Income \$5,500

Stereo loan payment 250

Furniture loan payment 200

Auto loan 400 . . .