Your dream house is for sale at a cost of $600,000. You have already saved a 25% down payment, but you will need a mortgage for the remaining amount. The bank offers you a loan for the required amount at a rate of 6.5% (for the next 5 years) based on a 25 year amortization period.
a) What will your monthly mortgage payment be?
b) Create an amortization table the at shows the first 5 months of payments, how much goes towards interest and principle, and the outstanding balance
c) How much will you still owe at the end of the 5 year term?