Question: Answer the Questions below with explanation please, Thanks Compute the required monthly payment on a $200,000 20-year-fixed-rate mortgage with a nominal interest rate of 5%.

Answer the Questions below with explanation please, Thanks

  1. Compute the required monthly payment on a $200,000 20-year-fixed-rate mortgage with a nominal interest rate of 5%. What is the balance due at the end of the first year? Construct the amortization table for the 1st year (12 months). Show your work; do not use a mortgage calculator.
  2. Consider a 10-year, fixed-rate mortgage for $100,000 at a nominal rate of 6%. What is the duration of the loan? If interest rates increase to 7% immediately after the mortgage is made, how much is the loan worth to the lender?

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