You plan to borrow $500,000 to buy a house. The amortization period of the mortgage is 20 years. You obtain a 5-year fixed rate mortgage from TD bank at 2%/year (using Canadian mortgage convention).

(a) How much do you owe the bank after the 60th payment?

(b) For the 24th monthly payment, how much of it is for interest, and how much of it is for principal repayment?

d) What is the present value of the interest portion of the first 60 payments?