1. Mortgage Loan. (Calculator set on END). Congratulations! Youve saved up enough money for a down payment and now youre ready to buy your first home. You find a nice home in Bothell that is selling for $600,000. You can make a down payment of 20% and are going to borrow the remaining $480,000 under a 30-year fixed-rate mortgage at 3.25%
   1. Compute the amount of your monthly payment

2. Prepare an amortization schedule covering the first 3 payments on this loan

3. While filling out your mortgage application, you see that there is a 15-year loan available with an annual interest rate of 3.0%. What would be the monthly payment on this loan? How much total interest would you save over the life of the loan if you could afford this higher payment?

2. Finance Lease (Calculator set on BEG). On January 1^st, 2019 Asphalt Paving Co leased a road-paving machine from ABC Equipment for 6 years. Payments under the lease were $187,635.68, with the first due upon signing of the lease on January 1, 2019, and the remainder due on December 31, 2019, and the following 4 years. The equipment had a sales price of $1,000,000 and an estimated useful life of 6 years. The interest rate implicit in the lease is 5%.
   1. Calculate the present value of future lease payments

2. Why does this arrangement qualify as a Finance lease?

3. Prepare the first three lines of the amortization table that would be used by the lessee

4. Record all journal entries related to this lease for Asphalt Paving for 2019 and 2020