Suppose you can afford to pay at most $1000 per month for a mortgage payment. If the maximum amortization period you can get is 25 years, and you must pay 6.5% interest per year compounded bi-weekly, what is the most expensive house you can buy? How much interest will you have paid to the lender at the end of the loan?

What is the monthly interest rate corresponding to the effective annual rate?
$r_m =$

What is the price of the most expensive house you can buy?

What is the total interest paid?

(you will lose 25% of your points if you do)