Amortization Formulas a. Periodic payment: R=- b. Principal outstanding at beginning of kth period: 1-(1+1) Ra,-k+1] =R.1-f1+r)^k-1 Interest in kth payment: Rrax-k+1} 4. Principal contained in kth payment: R(1-ra,-k+10) e Total interest paid: Rn-air) = nR-A Solve. A $245,000 mortgage for 25 years for a new home is obtained at the rate of 9.2% compounded monthly. 1. Please use the table provided to organize and label all pertinent information needed before starting the problem. Number of payments Interest rate per period Loan Amount List any other variables/calculations needed: Initial assumptions made? 2. Find the monthly payment 3. Find the total interest charged. (How does that compare to the loan amount?] 4. Find the interest in the first payment 5. After answering all questions and reviewing your work, please mention to the reader any assumptions or adjustments made to variables fouantities when solvin this