Illustrating Amortization. Heather McIntosh of Watertown, South Dakota, recently purchased a home for $190,000.

She put $25,000 down and took out a 25-year loan at 5.5 percent interest.

(a) Use Table 9-4 on page 285 to determine her monthly payment.

(b) How much of her first payment will go toward interest and principal and how much will she owe after that first month?

(c) How much will she owe after three months. Hint:
Use the logic of Table 9-2 on page 283.AppendixLO1