1. A fixed-rate, level-payment mortgage loan has the following properties: maturity =360 months, amount borrowed= $250,000, annual mortgage rate=6%

1. Construct an amortization table for the first 5 months
2. What are the mortgage balance and scheduled principal at the end of 260^th period( do not have to show the amortization table, just specify Balance and principle amount)
3. Explain why, in a fixed-rate mortgage, the amount of the mortgage payment applied to interest declines over time, while the amount applied to the repayment of principal increases.