Answer:
a) To determine the monthly mortgage payment, we first need to calculate the amount of the loan, which is equal to the purchase price of the house minus the down payment. In this case, the loan amount is 250,000 * 0.8 = 200,000. Next, we need to calculate the monthly interest rate, which is equal to the annual interest rate divided by 12. In this case, the monthly interest rate is 0.12/12 = 0.01. Using the formula for the monthly mortgage payment (P = L[i(1+i)^n]/[(1+i)^n-1]), where P is the monthly payment, L is the loan amount, i is the monthly interest rate, and n is the number of payments (in this case, 30 years * 12 = 360), we can calculate the monthly payment as:
P = 200,000[0.01(1+0.01)^360]/[(1+0.01)^360-1] = 1326.91
b) To calculate the total amount of interest Ato Liku will pay over the life of the mortgage, we can subtract the original loan amount from the total amount of payments made over the life of the mortgage. In this case, that would be 360 * 1326.91 - 200,000 = 480,596.
c) To determine the amount of the mortgage Ato Liku will have paid after 10 years, we can multiply the monthly mortgage payment by the number of payments made in 10 years (10 years * 12 = 120). In this case, that would be 120 * 1326.91 = 159,223.20.