Principal

Additional borrowing

Mortgage term

interest rate

Month Beg.

Bal.

Interest Pay.

Principal Repay.

Total Pay.

End. Bal.

Question $2$: Amortization

You took a $30-$year, $$700,000$ mortgage. The interest rate is fixed at $6\mathrm{.}5\%.$ According to the lending

agreement, after you make your first payment, you will immediately borrow an additional $$1,000$

each month for $48$ months. Create the amortization table if you make equal payments each month

and pay off the loan in $30-$years.

$$ Figure out payment you make each month before doing the amortization.

$$ The ending balance of month $360$ should be $0.$