a$)$ Blended paymentPART E: Instalment Notes Payable

J&J$\text{'}$s obtained a mortgage to purchase the land for the new expansion. The mortgage that

they acquired has a principal amount of $$500,000,$ a fixed annual interest rate of $4\%,$ and an

amortization period of $20$ years. The bank has given them the option between fixed principal

payments and a blended principal and interest payment.

a$)$ The fixed payment will be $$2,750$ of principal payment each month $($the interest will be

added on top$).$ Prepare an amortization schedule for the first $5$ payments using this

method.

b$)$ The blended payment will be $$3,021$ of principal AND interest each month. Prepare

an amortization schedule for the first $5$ payments using this method.