Question: Consider the following fixed-rate, level-payment mortgage:
maturity ! 360 months
amount borrowed ! $100,000
annual mortgage rate ! 10%
a. Construct an amortization schedule for the first 10 months.
b. What will the mortgage balance be at the end of the 360th month assuming no prepayments?
c. Without constructing an amortization schedule, what is the mortgage balance at the end of month 270 assuming no prepayments?
d. Without constructing an amortization schedule, what is the scheduled principal payment at the end of month 270 assuming no prepayments?