A friend of yours has recently purchased a home for $125,000, paying $25,000 down and the remainder financed by a 10.5%, 20 year mortgage, payable at $998.38 per month. At the end of the first month, he receives a statement from the bank indicating that only $123.38 of principal was paid during the month. At this rate, he calculates that it will take over 67 years to pay off the mortgage. Is he right? Discuss.

Do you always have to do such calculations yourself? What resources can you find that will help you to calculate amount, length of payments, etc. on a long term loan? Share some links with the rest of the class.