You recently purchased a single family home for $250,000. Since you were able to make the down payment of 20 percent, the bank granted you a mortgage loan for 20 years at a 5 percent annual rate of interest.

a. What are the annual payments that cover the interest and principal repayment?

b. How much of the first payment goes to cover the interest?

c. How much of the loan is paid off during the first year?

d. What is the interest payment during the second year?

e. What is the remaining balance after the second year?