Problem:
A fully amortizing mortgage loan is made for $100,000 at 5 percent interest for 25 years. Payments are to be made monthly. Calculate:
a. Monthly payments
b. Interest and principal payments during month 1.
c. Total principal and total interest paid over 25 years.
d. Total outstanding loan balance if the loan is repaid at the end of year 15.
e. Total monthly interest and principal payment through year 15.
f. What would the breakdown of interest and principal be during month 45?
Note: Provide support for your rationale.