Answer all Four (4) Questions Question & [30 marks] Question 2 The amount of principal paid in the early stages of a mortgage is relatively modest. On a $100,000 loan, at 6 percent for 360 months, the first payment is almost exactly $600 with $500 going for interest and $100 going toward principal. Before 2008's financial meltdown, many new homebuyers were getting "interest-only" mortgages. (They paid $500 per month for the first five years and then $644 per month thereafter.) Do you think this was a good idea? [10 marks] B A X, 66 *