Assume that you are interested in purchasing an apartment at the price of $250 000. The bank will loan you $ 200 000 at an (annual) interest rate of 2.15%.

a. Let's assume that you will pay of the loan at equal annual installments of $ 15 000 each. How much of the first installment goes towards interest repayment and how much goes towards amortization of the loan?

b. How much of the second installment goes towards interest and how much goes towards amortization?

c. From now, let's assume that you will repay the loan in 20 years (an pay an equal amount each year). How much will you pay annually?

The answers should be deducted manually with any programme such as excel or tool.