calculate a right number, and show the steps using sentences to get that number AND

follow instructions for each problem.

Problem 1:

A partially amortizing mortgage loan is made for $80,000 for 15 years. The interest rate is 6 percent per year

compounding monthly. The borrower and lender agree that a balance of $20,000 will remain and be repaid as a lump

sum at the end of 15 years. Payments are to be made monthly.

a) Calculate monthly payments.

b) Calculate the outstanding loan balance if the loan is repaid at the end of month 119.

c) Calculate the outstanding loan balance if the loan is repaid at the end of month 125.

d) Calculate the total principal and interest payments from the six payments made from month 120 to month 125.

e) Please finish the following specific STEPS where you calculate the outstanding loan balance if the loan is repaid

at the end of month 120.

I will put the following inputs in the calculator,

FV= ( )

N= ( )

I= ( )

PMT= ( )

And ask the calculator to compute PV = ( ), which will be the outstanding loan balance if the loan is

repaid at the end of month 120.