You plan to purchase a $130,000 house using a 15-year mortgage obtained from your local bank. The mortgage rate is 5.25 percent. You will make a down payment of 20 percent of the purchase price.

a. Calculate your monthly payments on this mortgage.

b. Using an Excel Spreadsheet, construct the amortization schedule for the first 12 payments.

c. Compute a breakdown of the total payments of the mortgage into interest and principal payment.