You want to purchase a house that is priced at $300,000. You can get a loan for 80 percent of the banks appraised value at 5.25% for 30 years with monthly amortization. The banks appraiser has a theory that the value of a house is 95% of the asking price and appraises it accordingly.

After you have computed the monthly payment in the previous problem, set up an amortization schedule for years 1 through 5 showing annual mortgage payment amounts, yearly mortgage balances, principal, and interest for each year (total). (Do not do a monthly amortization schedule to answer this problem, but do assume monthly compounding. Hint: Multiply the monthly payment in Problem 4 times 12 to get total annual payments)

The amortization table should look like the table below:

Year	Yearly Payment	Yearly Principal	Yearly Interest	Beginning Balance	Ending Balance
One
Two
Three
Four
Five