10. A couple are purchasing their first home and have arranged for a mortgage of $200,000 at a nominal annual interest rate of 6.75% compounded monthly for a period of 30 years. a. What will be their monthly payment? $1,297.20 b. At the end of year 10, what amount will be necessary to pay off the loan? $170,602.50 c. If at the end of the first year they pay an additional sum of $50,000 on the principal, what is the remaining principal? $147,869.08 d. If they continue with the monthly payments as found in part (a), how many payments will be necessary to retire the debt following the $50,000 payment described in part (c)? 182 full payments followed by a partial payment.

10. A couple are purchasing their first home and have arranged for a mortgage of $200,000 at a nominal annual interest rate of 6.75% compounded monthly for a period of 30 years. a. What will be their monthly payment? $1,297.20 b. At the end of year 10 , what amount will be necessary to pay off the loan? $170.602.50 c. If at the end of the first year they pay an additional sum of $50,000 on the principal, what is the remaining principal? $147,869.08 d. If they continue with the monthly payments as found in part (a), how many payments will be necessary to retire the debt following the $50,000 payment described in part (c)? 182 full payments followed by a partial payment