1) Let's assume that a loan of $100,000 with an annual interest rate of 6% over 30 years pays monthly payments of $500.

a. Calculate the accumulation rate (5 points)

b. Calculate the payment rate (5 points).

c. Answer (5 points): How will the principal balance be at the end of the loan in relation to the original amount of the loan? Less than, equal to or more?

Provide calculations.