Go to http://finance.yahoo.com/calculator/real-estate/hom03/?bypass=true Assume a loan amount of $120,000, an interest rate of 7.4 percent, and a30-year maturity. Given this information , what is the monthly payment?

a. In this first month, how much of the monthly payment is interest and how much is principal?

b. What is the outstanding balance after the first year?

c. In the last month of payment, how much of the monthly payment is interest and how much is principal?

d. Why is there such a difference in the composition of the principal versus interest payment over time?