A 5-year mortgage for $95,000 is issued at a 9% nominal annual interest rate.

a) What is the monthly payment?

b) Calculate the interest and principal paid for month 25 without building the entire amortization table using the appropriate interest factors. Then, verify your answer using IPMT and PPMT excel functions.

c) How long does it take to pay off the mortgage, if $2,500 per month is paid? First, use interest table and linear interpolation to find the duration of the loan. Then, verify your answer with NPER excel function.