Using an Excel spreadsheet, please complete the calculations for this home mortgage loan problem.

Initial home mortgage amount borrowed: $245,000.

Annual mortgage loan rate: 5.15%.

Term of the home mortgage loan: 20 years.

Mortgage Payment: To be made on December 31 (i.e., once per year) during each of the 20 years that the mortgage loan is outstanding.

Step One: Calculate the value of the annual mortgage payment and enter that amount here:

$ ______________________

Step Two: Prepare a mortgage loan amortization table in Excel. Your loan amortization table should break each home mortgage payment into its “principal” and “interest” components.

Step Three: Over the 20-year life of the home mortgage loan, list the following values that are paid:

Total interest over the 20-year life of the loan: $_______________.

Total principal over the 20-year life of the loan: $ ______________.