Sophie is looking to take out a mortgage for $540,000 from a bank offering an annual interest rate of 6.3%. compounded
monthly.
a) Using the formula below, determine her monthly payment, to the nearest dollar, if the loan is taken over 10 years and
Sophie puts down a down payment of $100,000.
b). If Sophie can afford to pay 2,500 monthly only, then determine how much she must pay up front as her down payment?