You decide to buy a small apartment building for $300,000. You pay $20,000 cash (down payment) and borrow the rest. The loan is for 20 years and requires equal monthly payments to include principal and interest of 4.5 percent per year.

(a) Calculate the amount of the monthly installment payments. You must show your work for credit. For example, you can describe the steps you followed to arrive at your answer or values you entered in the calculator (values you entered for PV, N, I/Y, etc). Either underline or highlight your final answer.

(b) What is the loan balance at the end of the first month? You must show your work for credit. For example, you can describe the steps you followed to arrive at your answer or values you entered in the calculator (values you entered for PV, N, I/Y, etc). Either underline or highlight your final answer.