his extended problem covers many of the features of a mortgage. You purchase a town house for $$300,000.$ Since you are able to make a down payment of $10$ percent $($$$30,000),$ you are able to obtain a $$270,000$ mortgage loan for $20$ years at a $4$ percent annual rate of interest. Use Appendix D to answer the questions. Round your answers to the nearest dollar.

What are the annual payments that cover the interest and principal repayment?

$$$

How much of the first payment goes to cover the interest?

$$$

How much of the loan is paid off during the first year?

$$$

What is the interest payment during the second year?

$$$

What is the remaining balance after the second year?

$$$

Why did the interest payment change during the second year?

The annual $-$Select$-$increasedecreaseItem $6$ in the amount owed $-$Select$-$increasesdecreasesItem $7$ each subsequent interest payment.