1) What is the EAR (effective annual rate) of a mortgage that is advertised at (your-5%) APR (annual percentage rate) over the next 20 years and paid with monthly payments?

Answer: ________________

Amortization Schedule for a $15,000 Loan at (your-5%) with 3 Annual Payments. Present the values for year 2 in the following table.

Amortization Schedule for a $15,000 Loan at (your-5%) with 3 Monthly Payments. Present the values for the month 3 in the following table.

Year Beginning Annual Interest Principal Remaining Principal Payment Expense Reduction Principal 2 51 52 53 54