#2

1. You have just taken out a mortgage for $575,000, at a fixed rate of 4.75% per year, compounded monthly, and a term of 30 years. Calculate the monthly payments. a. $4,734.21 b. $3,000.08 c. $2,999.47 d. $1,787.56 2. Consider again the mortgage in question 1. Calculate the portion of the fixed payment that is dedicared to interest and the portion that is dedicated to principal in the sixth payment. a. Interest =$2,270.42; Principal Paid =$729.22 b. Interest =$2,264.33; Principal Paid =$734.70 c. Interest =$2,261.61; Principal Paid =$737.86 d. Interest =$2,249.89; Principal Paid =$752.63