ANSWER i-2

Suppose you take out a $100,00o0, 20-year mortgage loan to buy a condo. The interest rate on the loan is 6%. To keep things simple, we will assume you make payments on the loan annually at the end of each year. a. What is your annual payment on the loan? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual payment 8,718.47 b. Construct a mortgage amortization. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Beginning-of- Year-End Interest Due on Balance Amortization End-of-Year of Loan Year-End Year Year Payment Balance Balance 100,000.00 6,000.00 8,718.46 2,718.46 97,281.54 97,281.54 5,836.89 8,718.46 2,881.57 94,399.97 3 94,399.97 5,664.00 8,718.46 3,054.46 91,345.51 4 91,345.51 5,480.73 8,718.46 3,237.73 88,107.78 88,107.78 5,286.47 8,718.46 3,431.99 84,675.79 84,675.79 5,080.55 8,718.46 3,637.91 81,037.88 81,037.88 4,862.27 8,718.46 3,856.19 77,181.69 8,718.46 77,181.69 4,630.90 4,087.56 73,094.13 73,094.13 4,385.65 8,718.46 4,332.81 68,761.32 4,592.78 10 68,761.32 4,125.68 8,718.46 64,168.54 59,300.19 11 64,168.54 3,850.11 8,718.46 4,868.35 12 59,300.19 3,558.01 8,718.46 5,160.45 54,139.74 13 54,139.74 3,248.38 8,718.46 5,470.08 48,669.66 8,718.46 14 48,669.66 2,920.18 5,798.28 42,871.38 15 42,871.38 2,572.28 8,718.46 6,146.18 36,725.21 16 36,725.26 2,203.51 8,718.46 6,514.95 30,210.26 17 30,210.26 1,812.62 8,718.46 6,905.84 23,304.41 18 23,304.41 1,398.26 8,718.46 7,320.20 15,984.22 959.05 8,718.46 8,224.81 19 15,984.22 7,759.41 493.49 8,224.81 20 8,224.81 8,718.46 0.00 i-1. Recompute the amortization table. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Beginning-of- Year Year-End Amortization End-of-Year Year-End Year Interest Due Payment of Loan Balance on Balance Balance 100,000.00 12,000.00 13,387.88 1,387.88 98,612.12 98,612.12 11,833.45 13,387.88 1,554.43 97,057.69 3 97,057.69 11,646.92 13,387.88 1,740.96 95,316.74 95,316.74 11,438.01 13,387.88 1,949.87 93,336.87 93,366.87 11,204.02 13,387.88 2,183.86 91,183.01 91,183.01 10,941.96 13,387.88 2,445.92 88,737.09 88,737.09 10,648.45 13,387.88 2,739.43 85,997.66 85,997.66 10,319.72 13,387.88 3,068.16 82,929.50 82,929.50 9,951.54 13,387.88 3,436.34 79,493.16 10 79,493.16 9,539.18 13,387.88 3,848.70 75,664.46 11 75,644.46 9,077.34 13,387.88 4,310.54 71,333.92 12 71,333.92 8,560.07 13,387.88 4,827.81 66,506.11 66,506.11 13 7,980.73 13,387.88 5,407.15 61,098.96 14 61,098.96 7,331.88 13,387.88 6,056.00 55,042.96 15 55,042.96 6,605.15 13,387.88 6,782.73 48,260.23 16 48,260.23 5,791.23 13,387.88 7,596.65 40,663.58 17 40,663.58 4,879.63 13,387.88 8,508.25 32,155.33 18 32,155.33 3,858.64 13,387.88 9,529.24 22,626.09 11,953.34 19 22,626.09 2,715.13 13,387.88 10,672.75 20 11,953.34 1,434.40 13,387.88 11,953.34 0.00 i-2. What is the real value of the first (year-end) payment in this high-inflation scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Real value of the first payment j. What is the real value of the last payment in this high-inflation scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Real value of the last payment 24 6,110.05