a. The most popular fixed-rate mortgages among home buyers are those with 15-year and 30-year maturities. What might be some of the comparative advantages and disadvantages of these two mortgage maturities?

b. Suppose you were to finance a home purchase using a fixed-rate mortgage. Would you prefer a 15-year- or 30-year-maturity mortgage? Why?

c. Suppose a 30-year, $100,000 mortgage is financed at an annual interest rate of 4 percent. What are the interest and principal payments for the 120th payment? The 240th payment?

d. What is the remaining balance on this mortgage after 100 payments (i.e., after 8 years and 4 months)? After 200 payments?