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this extended problem covers many of the features of a mortgage you purchase a townhouse for 200,000 since you are able to make a down payment of 10% (20,000) you are able to obtain a 180000 mortgage loan for 25 years at a 4% annual rate of interest use appendix d to answer the questions round your answers to the nearest dollar.

a. what are the annual payments that cover the interest and principal repayment?

b how much of the first payment goes to cover the interest?

c. how much of the loan is paid off during the first year?

d. what is the interest payment during the second year?

e. what is the remaining balance after the second year?

f. why did the interest payment change during the second year?

Interest Factors for the Present Value of an Annuity of One Dollar Time Period (e.g.. 1% year) 2% 3% 4% 5% 6% 7 8% 10% 9% 14% 16 % 18% 12% 28% 32 % 20% 24% 0.990 0.980 0.971 0.962 0952 0.943 0935 0.926 0.917 0909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0758 0S 1 1.970 1.947 1913 1.886 1859 1.833 1808 1.783 1.759 1.736 1690 1.647 1.605 1.566 1528 1457 1392 1332 1226 2.941 2.884 2.829 2.775 2723 2.673 2624 2.577 2.531 2487 2.402 2322 2.246 2.174 2.106 1.981 1868 1766 1674 3 3.902 3.808 3717 3.630 3.546 3465 3387 3.312 3240 3.170 3.037 2.914 2.798 2.690 2.589 2.404 2.241 2.096 1966 4 4.853 4.713 4580 4.452 4.329 4.212 4100 3.993 3.890 3.791 3.605 3433 3.274 3.127 2.991 2.745 2.532 2.345 2 181 5 5.795 5.601 5417 5242 5.076 4.917 4.766 4623 4.486 4.355 4.111 3889 3.685 3.498 3.326 3020 2.759 2.534 2399 6 6.728 6.472 6.230 6002 5786 5.582 5.389 5 206 5.033 4.868 4.564 4.288 4.039 3.812 3.605 3.242 2937 2678 2.455 7 7.652 7.32S 7020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.344 4.078 3837 3.421 3.076 2.786 2540 8.566 8.162 7.786 7435 7108 6.802 6.515 6.247 5.985 5.759 5.328 4.946 4.607 4.303 4.031 3.566 3.184 2.868 2.603 9.471 8.983 8.530 8.1117722 7360 7024 6.710 6418 6145 5.650 5.216 4.833 4494 4.193 3.682 3.269 2.930 2650 8 10 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5988 5.453 5.029 4.656 4.327 3.776 3.335 2978 2.683 12 11.255 10.575 9.954 9.385 8.863 8.384 7943 7536 7.161 6814 6.194 5.660 5.197 4.793 4,439 3.851 3.387 3.013 2.708 13 12.134 11.348 10.635 9.986 9.394 8.534 8.358 7904 7487103 6.424 5.842 5.342 4910 4533 3.912 3.427 3.040 2.727 14 13.004 12.106 11.296 10 563 9.899 9.295 8.745 8.244 7786 7.367 6.628 6.002 5.468 5.008 4.611 3.962 3459 3.061 2.740 15 13.865 12.849 11.938 11.118 10.380 9712 9.108 8559 8.060 606 6.811 6142 5.575 5.092 4.675 4.001 3.483 3.076 2.750 11 14.718 13.578 12 561 11.652 10.838 10.106 9447 8 851 8312 7824 6.974 6.265 5.669 5.162 4.730 4.003 3503 3088 2.758 16 15.562 14.292 13 166 12.166 11.274 10 477 9.763 9122 8544 8.002 7120 6.373 5749 5.222 4.775 4059 3518 3.097 2.763 17 16.398 14.992 13.754 12.659 11690 10.828 10 059 9372 8756 8.201 7250 6.467 5818 5.273 4812 4080 3529 3.104 2.767 17.226 15.678 14 324 13 134 12.085 11.158 10.336 9.604 8.950 8 365 7366 6.550 5 877 5316 4.844 4097 3.539 3.109 2.770 18.046 16.351 14.877 13.590 12 462 11.470 10594 9818 9 128 8.514 7469 6.623 5.929 5.353 4.870 4.110 3.546 3.113 2772 18 19 20 25 22.023 19.523 17.413 15.622 14 094 12 783 11.654 10 675 9.823 907 7843 6873 6.097 5467 4948 4.147 3564 3.122 2.776 30 25.808 22.937 19.600 17.292 15.373 13 765 12 40911258 10.274 9.422 8.055 7003 6177 5.517 4979 4.160 3.569 3.124 2.778

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