You just took out a $15-$year traditional fixed$-$rate mortgage for $$300,000$ to buy a house. The interest rate is $4\mathrm{.}8\%($APR$)$ and you have to make payments monthly. Attempt $2/10$ for $10$ pts$.$Part $1$What is your monthly payment?Correct Since it's a traditional fixed$-$rate mortgage, the cash flows are constant and make up an annuity. We can thus use the annuity formula, solved forPMT.Monthly interest rate: I $=0\mathrm{.}048/12=0\mathrm{.}004$Number of months: N $=15*12=180$PVAN$=$PMT$[11/(1+$I$)$NI$]$PMT$=$PVANI$11/(1+$I$)$N$=300,0000\mathrm{.}00411/(1+0\mathrm{.}004)180=2,341$ Using a financial calculator: NI$/$YPVPMTFVInputs$1800\mathrm{.}4-300,0000$Compute $2,341$ Using Excel $($do not enter the thousands separators$)$:$=$PMT$($rate$,$ nper, pv$)=$PMT$(0\mathrm{.}048/12,180,-300,000)=2,341$ Attempt $5/10$ for $10$ pts$.$Part $2$How much of your first monthly payment goes towards paying down the outstanding balance $($in $$)?$Correct Since the initial balance is $$300,000$ and the monthly interest rate is $0\mathrm{.}004,$ we have to pay $$300,000*0\mathrm{.}004=$ $$1,200$ in interest in the first month.Therefore, the remainder of the payment is principal repayment, which reduces the outstanding balance:Principal repayment $=$ Payment $-$ Interest $=2,341-1,200=1,141\mathrm{.}24$Using Excel $($do not enter the thousands separators$)$:$=$PPMT$($rate$,$ per, nper, pv$)=$PPMT$(0\mathrm{.}048/12,1,180,-300,000)=1,141\mathrm{.}24$ Attempt $3/10$ for $10$ pts$.$Part $3$How much of your $13$th monthly payment goes towards paying down the outstanding balance $($in $$)?$