Problem 7-16 This extended problem covers many of the features of a mortgage. You purchase a town house for $350,000. Since you are able to make a down payment of 10 percent ($35,000), you are able to obtain a $315,000 mortgage loan for 15 years at a 5 percent annual rate of interest. Use Appendix D to answer the questions. Round your answers to the nearest dollar. a. What are the annual payments that cover the interest and principal repayment? $ b. How much of the first payment goes to cover the interest? $ c. How much of the loan is paid off during the first year? $ d. What is the interest payment during the second year? $ e. What is the remaining balance after the second year? $ f. Why did the interest payment change during the second year? The annual -Select- in the amount owed -Select- each subsequent interest payment.