Intro to Mechanical Design, Economics.

Mary takes out a 20-year loan for $200,000 at 6.00% annual interest rate to purchase her new home. How much are her monthly loan payments? How much of the first payment goes toward the principle? How much of the last payment goes toward the principle? How much of the last payment goes toward the interest?

Inside the red box is the problem. Inside the blue box are the answers to the problem. Please show detailed steps on how to solve the problem by hand to get the answers.

Inside the red box is the problem. Inside the blue box are the answers to the problem. Please show detailed steps on how to solve the problem by hand to get the answers. 110. Mary takes out a 20-year loan for $200,000 at 6.00% annual interest rate to purchase her new home. How much are her monthly loan payments? How much of the first payment goes toward the principle? How much of the last payment goes toward the principle? How much of the last payment goes toward the interest? 0.005*1.005240 A P* (A/P, 0.005, 240) - $200,0000524$1432.86 First payment interest: 0.005 *200,000 $1000 First payment toward principle $1432.86 - $1000 $432.86 2.39 Last payment 1432.86 1.005(principle left after 259 payments) which implies that the principle remaining after the 259th payment is 2.39 1432.86/1.005 $1425.73 which is the amount of principle paid off in the last payment. Therefore the interest paid in the last payment is $1432.86 $1425.73 $7.13