Consider the following fixed-rate, level-payment mortgage: Maturity = 360 months Amount borrowed = $100,000 Annual mortgage rate = 10%

a. Construct an amortization schedule for the first 10 months. (Do it in Excel, give me formulas)

b. What will the mortgage balance at the end of the 360th month, assuming no prepayment?

c. Without constructing an amortization schedule, what is the mortgage balance at the end of month 270 assuming no prepayment?

Keys: a. Month Ending Mortgage Balance 1 $99,955.76 2 $99,911.15 3 $99,866.18 4 $99,820.82 5 $99,775.09 6 $99,728.98 7 $99,682.48 8 $99,635.60 9 $99,588.32 10 $99,540.65 b. 0 c. beginning balance = 55,821.79; ending balance = 55,409.40