Problem:
A loan of 100,000 has payments at the end of each month for 12 years. For the first 6 years the payments are Z each month, and for the final 6 years the payments are 2Z each month. Interest is at a nominal annual rate of 12% compounded monthly.
Required:
Question 1: Find the outstanding balance at the end of the first year. Explain comprehensively and provide full description.