j. Suppose you bought a house and took out a mortgage for $150,000. The interest rate is 8%, and you must amortize the loan over 10 years with equal end-of-year payments. Set up an amortization schedule that shows the annual payments and the amount of each payment that goes to pay off the principal and the amount that constitutes interest expense to the borrower and interest income to the lender. $150,000 Original amount of mortgage: Term of mortgage: Interest rate: 8% Annual payment (use PMT function): This number should be a negative number because it's an outflow. Year Observe the amortization of this mortgage Beg. Amt. Pmt Interest Principal 1 $150,000 $0.00 $ 12,000.00 -$12,000.00 2 $162,000.00 $0.00 $ 12,960.00 -$12,960.00 3 $174,960.00 $0.00 $ 13,996.80 -$13,996.80 4 $188,956.80 $0.00 $ 15,116.54 -$15,116.54 5 $204,073.34 $0.00 $ 16,325.87 -$16,325.87 6 $220,399.21 $0.00 $ 17,631.94 -$17,631.94 7 $238,031.15 $0.00 $ 19,042.49 -$19,042.49 8 $257,073.64 $0.00 $ 20,565.89 -$20,565.89 9 $277,639.53 $0.00 $ 22,211.16 -$22,211.16 10 $299,850.69 $0.00 $ 23,988.06 -$23,988.06 End. Bal. $162,000.00 $174,960.00 $188,956.80 $204,073.34 $220,399.21 $238,031.15 $257,073.64 $277,639.53 $299,850.69 $323,838.75