Refer to homework problem 48 (P5-48) from the Time Value of Money chapter in the textbook to answer this question. You were required to solve for the loan amortization schedule in this problem based on a 3 year loan with annual payments. If you are considering selecting between a mortgage of either a 15 year mortgage or a 30 year mortgage, what changes must be made to the variables in the problem to solve for the payment? (NOTE: this is only a theory question. Calculations are not necessary.)

What factors would you want to take into consideration to help you choose between either a 15 year loan or a 30 year loan?

Referring to the original problem (48), calculate the loan payment if the payments are due monthly instead of annual payments. Show your calculator keystroke setup and identify your answer.

Personal Finance Problem P48 Loan amortization schedule Joan Messineo borrowed $45,000 at a 4% annual rate of interest that she must repay over 3 years. The loan is amortized into three equal, end-of-year payments. a. Calculate the end-of-year loan payment. b. Prepare a loan amortization schedule showing the interest and principal break- down of each of the three loan payments. c. Explain why the interest portion of each payment declines with the passage of time