1. You have purchased a home for $150,000. Fortunately, you were able to make a down payment of $15,000, but took out a 30-year mortgage for the $135,000 balance. The note payments are $1,388.63 per month at 12% annual interest.

A. Prepare the amortization schedule for the first 12 months of payments.

B. Calculate the subtotal for the amounts of cash payments, interest payments, and principal payments for the first12 months of payments.

C. Calculate the total amount of interest that will be paid over the life of this loan.

D. Calculate the total dollar cost of this home over the 30 years.

2. Assume the same facts and requirements as in #1 above, except that the mortgage is a 15-year mortgage and the amount of monthly loan payments is $1,620.23.

3. How much more would you pay for your home if you take a 30-year mortgage as opposed to taking 15-year mortgage?