Alvin, a friend of yours, has recently purchased a home for €125,000, paying €25,000 down and the remainder financed by a 6.5%, 20-year mortgage, payable at €745.57 per month. At the end of the first month, Roy receives a statement from the bank indicating that only €203.90 of principal was paid during the month. At this rate, he calculates that it will take over 40 years to pay off the mortgage. Is he right? Analyze and give your explanation!