Question
After years of saving Mr. and Mrs. Smitty have found the home of their dreams. The home costs $100,000 and the Smittys want to put
After years of saving Mr. and Mrs. Smitty have found the home of their dreams. The home costs $100,000 and the Smittys want to put $30,000 from their savings as a down payment. The market interest rate is 12% and the loan is for a period of 30 years. Construct an amortization schedule which includes the following:
The Annual Payment (assume they pay once a year)
Beginning Balance
Ending Balance
Contribution to Principle
Interest Payment
Total Amount Paid on the Loan over its life.
Prepare a brief discussion that includes an analysis, as well as your recommendation, for this amortization schedule.
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