Do the Math 9-5 Illustrating Amortization

Heather McIntosh of Watertown, South Dakota, recently purchased a home for $200,000. She put $22,500 down and took out a 25-year loan at 6.5 percent interest. Round your answers to the nearest cent.

Use Table 9-4 to determine her monthly payment. Round Estimating Mortgage Loan Payments for Principal and Interest in your intermediate calculations to four decimal places.

$

How much of her first payment will go toward interest and principal?

Interest will be $

Principal will be $

How much will she owe after that first month? (Hint: Use the logic of Table 9-2.)

$

How much will she owe after three months? Do not round intermediate calculations. (Hint: Use the logic of Table 9-2.)

$