Intro You just took out a 15-year traditional fixed-rate mortgage for $600,000 to buy a house. The interest rate is 2.4% (APR) and you have to make payments monthly. Part 2 - Attempt 1/10 for 10 pts. How much of your first monthly payment goes towards paying down the outstanding balance in $)? Correct Since the initial balance is $600,000 and the monthly interest rate is 0.002, we have to pay $600,000 * 0.002 = $1,200 in interest in the first month. Therefore, the remainder of the payment is principal repayment, which reduces the outstanding balance: Principal repayment = Payment - Interest = 3,973 - 1,200 = 2,773 Using Excel (do not enter the thousands separators): =PPMT(rate, per, nper, pv) =PPMT(0.024/12, 1, 180, -600,000) =2,773 IB Attempt 3/10 for 10 pts. Part 3 What is the outstanding balance after 1 year if you have made all 12 payments on time? No decimals Submit