Part B

Your firm borrows $1m to buy a warehouse. The loan is a 30-year mortgage at 6% per year with monthly repayments without any balloon payment. Create an amortization table, but print out only the 30 rows of monthly payments for the anniversary months, i.e., 12, 24, 36, , 348, and 360. The 6 needed columns are: No. of month, Beginning balance, Monthly payment, Interest, Principal reduction, Ending balance. Except for first column, all columns are to be in currency format.

Answer:

Print the 30 selected anniversary months of the amortization table in 1 page.

Estimate:

i. Percent of interest of monthly payment in first, 180^th, and last months.

Ans.: ________%; _________%; __________% (2 decimal places)

ii. Percent of equity accrued midway in the 30-year mortgage.

Ans.: _________% (2 decimal places)