This extended problem covers many of the features of a mortgage. You purchase a town house for $$250,000.$ Since you are able to make a down payment of $20$ percent $($$$50,000),$ you are able to obtain a $$200,000$ mortgage loan for $15$ years at a $4$ percent annual rate of interest. Use Appendix D to answer the questions. Round your answers to the nearest dollar.

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

$

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

$

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

$

What is the interest payment during the second year?

$

What is the remaining balance after the second year?

$

Why did the interest payment change during the second year?

The annual

$-$Select$-$

in the amount owed

$-$Select$-$

each subsequent interest payment.