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Determine the annual repayment schedule for the first two years (i.e., interest, principal repayment, and balance owed) for each of the following. (Assume that only

Determine the annual repayment schedule for the first two years (i.e., interest, principal repayment, and balance owed) for each of the following. (Assume that only one payment is made annually.) Show all work.

a. $100,000 conventional mortgage for 25 years at 5 percent

Annual Payment = PMT (x) =

Year

Interest Payment

Principal Repayment

Loan Balance

1

2

b. $100,000 conventional mortgage for 20 years at 5 percent

Annual Payment = PMT (x) =

Year

Interest Payment

Principal Repayment

Loan Balance

1

2

c. $100,000 conventional mortgage for 25 years at 6 percent

Annual Payment = PMT (x) =

Year

Interest Payment

Principal Repayment

Loan Balance

1

2

d. Compare the payments required by each mortgage.

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