8. You are considering a mortgage with the following terms:

Principal: $450,000; Interest rate: 8.0% (annualized); Amortization period: 15 years

Monthly repayment of principal and interest

a. What is the principal and interest components of the months payments for the first 3 months?

(6 marks)

b. What is the principal owed after the payment due in 6 months? (2 marks)

c. What is the cumulative interest paid after the payment due in 6 months? (2 marks)

d. What is the mortgage balance after 12 months? (4 marks)