$\mathrm{.}24(4$:$,2,,,??$ C$\mathrm{.}2/-$

Suppose you take out a $$118,000,20-$year mortgage loan to buy a condo. The interest rate on the loan is $6\%.$ To keep things simple, we will assume you make payments on the loan annually at the end of each year.

a$.$ What is your annual payment on the loan?

b$.$ Construct a mortgage amortization.

c$.$ What fraction of your initial loan payment is interest?

d$.$ What fraction of your initial loan payment is amortization?

e$.$ What is the total of the loan amount paid off after $10$ years $($halfway through the life of the loan$)?$

f$.$ If the inflation rate is $2\%,$ what is the real value of the first $($year$-$end$)$ payment?

g$.$ If the inflation rate is $2\%,$ what is the real value of the last $($year$-$end$)$ payment?

h$.$ Now assume the inflation rate is $8\%$ and the real interest rate on the loan is unchanged. What must be the new nominal interest rate?

i$-1.$ Recompute the amortization table.

$1-2.$ What is the real value of the first $($year$-$end$)$ payment in this high$-$inflation scenario?

J$.$ What is the real value of the last payment in this high$-$inflation scenario?

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Req C and D $$

$$ Req $H$ Recompute the amortization table.

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places, Leave no cells blank $-$ be certain to enter $"0"$ wherever required. Enter all values as positive value.

$\backslash$table$[[$Year$,\backslash$table$[[$Beginning$-$of$-],[$Year$],[$Balance$]],\backslash$table$[[$Year$-$End$],[$Interest Due$],[$on Balance$]],\backslash$table$[[$Year$-$End$],[$Payment$]],\backslash$table$[[$Amortization$],[$of Loan$]],\backslash$table$[[$End$-$of$-$Year$],[$Balance$]]],[1,,,,,118,000\mathrm{.}00x$