A mortgage of 100000 has just been arranged for 25 years at


Question: A mortgage of $100,000 has just been arranged for 25 years at an interest rate of 9.5 percent. It calls for equal payments made at year-end.

(a) What is the size of each payment?

(b) After 10 payments have been made, what will be the outstanding principal?

(c) What will be the interest portion of the 15th payment?

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