1. Consider a standard mortgage (360 months) with monthly payments and a nominal rate (monthly compounding) of 6.90%. What portion of the payments during the first 31 months goes toward principal?
14.44%
12.79%
14.21%
14.53%
13.85%
2. What would be the principal balloon payment (that is excluding the fixed monthly payment) at the end of 5 years on a $150,000 loan with monthly payments based on a 30 year term at 12% compounded monthly?
143,243
146,495
148,038
154,034
156,343