chp 7-16

F.) (slecet anser) both Increase or decrease

This extended problem covers many of the features of a mortgage. You purchase a town house for $150,000. Since you are able to make a down payment of 20 percent ($30,000), you are able to obtain a $120,000 mortgage loan for 15 years at a 6 percent annual rate of interest. Use Appendix D to answer the questions. Round your answers to the nearest doliar. a. What are the annual payments that cover the interest and principal repayment? s b. How much of the first payment goes to cover the interest? $ c. How much of the loan is paid off during the first year? $ d. What is the interest payment during the second year? s e. What is the remaining balance after the second year? $ f. Why did the interest payment change during the second year? The annual in the amount owed each subsequent interest payment. Interest Factors for the Present Value of an Annuity of One Dollar \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{l} Time, \\ Period \\ (e.g, \\ year) \end{tabular} & 15. & 25 & 3% & 4% & 5% & 6% & 7% & 8% & es & 10% & 12% & 145: & 16% & 18% & 20% & 24% & 28% & 32% & \\ \hline 1 & 0.990 & 0.980 & 0.971 & 0.962 & 0.952 & 0.943 & 0.935 & 0.926 & 0.917 & 0.909 & 0.893 & 0.877 & 0.862 & 0.847 & 0.833 & 0.806 & 0.781 & 0.758 & 0.735 \\ \hline 2 & 1970 & 1.942 & 1.913 & 1.886 & 1.859 & 1.833 & 1.808 & 1.783 & & & & & & 1,566 & & & & & \\ \hline 3 & & 884 & 2.829 & \begin{tabular}{l} 1.775 \\ 2.080 \end{tabular} & 2.723 & 2.673 & 2.624 & 2.577 & 31 & 2.487 & 2.402 & 2.322 & 2.246 & 2.174 & 2.106 & 1.981 & 1.868 & 1.766 & 1.674 \\ \hline 4 & 3902 & \begin{tabular}{l} 2.004 \\ 3.808 \end{tabular} & 3.717 & 3.630 & 3.546 & \begin{tabular}{l} 3.465 \\ 3.73 \end{tabular} & 3.387 & 3.312 & 3.240 & 3.170 & 3.037 & 2.914 & 2.798 & 2.690 & 2.589 & 2.404 & 2.241 & 2.096 & 1.966 \\ \hline 5 & 4.853 & 4.713 & 4.580 & 4.452 & 4.329 & 4.212 & 4.100 & 3993 & 3.890 & 3.791 & 3.605 & 3.433 & 3.274 & 3.127 & 2991 & 2.745 & 2.532 & 2.345 & 2.181 \\ \hline 6 & 5.795 & 60 & 5.41 & 5.24 & 5.0 & 4. & 4.766 & 4.623 & 4.486 & 4.355 & 4.111 & 3.889 & 3.685 & 3.498 & 3.326 & 3.020 & 2759 & 142 & 2 \\ \hline 7 & & 6.472 & & & 5.7 & 5. & & & & & 4.564 & 4.288 & & & & & & & \\ \hline 8 & 7.652 & 7.325 & 7.020 & 6.733 & 6.463 & 6.210 & 5.971 & 5.747 & 5.535 & & & 4.639 & 44 & 4. & & 1 & 3.076 & 2.786 & 540 \\ \hline 9 & 8.566 & 8.162 & 7.786 & 7.435 & 7.108 & 6.802 & 6.515 & 6.247 & 5.985 & 5.759 & 5.328 & 4.946 & 4.607 & 4.303 & 4.031 & 3.566 & 3.184 & 2.868 & 2.603 \\ \hline 10 & 9.471 & 8.983 & 8.530 & 8.111 & 7.722 & 7.360 & 7.024 & 6.710 & 6.418 & 6.145 & 5.650 & 5.216 & 4.833 & 4.494 & 4.193 & 3.682 & 3.269 & 2.930 & 2.650 \\ \hline 11 & 10.368 & 9.787 & 9.253 & 8.760 & 8.306 & 7.887 & 7.499 & 7.139 & 05 & 6.495 & 5988 & 5.453 & 5.029 & 66 & 27 & 3.776 & 3.335 & 2978 & \\ \hline & 11 & 10.575 & 9.954 & 9.385 & 8.863 & 8.384 & 7.943 & 7.5 & 7.1 & 6.814 & 6.194 & 5.660 & 5. & 3 & 9 & 1 & 37 & 3 & \\ \hline 13 & 12.1 & 11.348 & 10.635 & 9986 & 9.394 & 8.534 & 8.3 & 7.904 & 7.487 & 7.1 & 6.4 & 5.842 & 5 & 4. & 4.5 & 3. & 3. & 3.040 & \\ \hline 14 & 13.004 & 12.106 & 11.296 & 10.563 & 9.899 & 9.295 & 8.745 & 8.244 & 7.786 & 7.367 & 6.628 & 6.002 & 5.468 & 5.008 & 4.611 & 3962 & 3.459 & 3.061 & 2.7 \\ \hline 15 & 13.8651 & 1 & 11.938 & 11.1181 & 10.380 & 9.712 & 9.108 & 8.559 & 8.060 & 7.606 & 6.811 & 6.142 & 5.575 & 5.092 & 4.675 & 4.001 & 3.483 & 3.076 & 2750 \\ \hline 16 & 14 & & & 11. & 100 & 10.106 & 9.447 & 8.851 & 8.312 & 7.824 & 6.974 & 6.265 & 5.669 & 5.162 & 4.730 & 4.003 & 3,503 & 3.088 & \\ \hline 17 & & & 13.1 & 12.1 & 11.2 & 10.477 & 9.763 & 9.122 & 8.544 & & 7.120 & 6.373 & & & & & & & \\ \hline 18 & 16.39 & 14.9 & 13.7 & 126 & 11.6 & 10.828 & 10.059 & 9.372 & 8.756 & 8.201 & 7.250 & 6.467 & 5.818 & 5.273 & 4.812 & 4.080 & 3.529 & 3.104 & 3 \\ \hline 19 & 17.2261 & 15.6 & 14.3 & & & 11,158 & 10.336 & 9.604 & 8.950 & 8.365 & 7.366 & 6.550 & 5.877 & 5.316 & 4.844 & 4.097 & 3.539 & 3.109 & 0 \\ \hline 20 & 18.046 & 130 & 1487 & & 12.462 & 11470 & 10.594 & 9.818 & 9.128 & 8.514 & 7.469 & 6.623 & 5929 & 5.353 & 4.870 & 4.110 & 3.546 & 3.113 & 2772 \\ \hline 25 & 22.02 & 19.5231 & 17.413 & 622 & 1.094 & 12.783 & 11.654 & 10.675 & 9.823 & 9.077 & 7.843 & 6.873 & 6.097 & 5.467 & 4.948 & 4.147 & 3.564 & 3.122 & 2776 \\ \hline 30 & 25 & 371 & 19.600 & 17.2921 & 15.373 & 13.765 & 12.409 & 11.258 & 10.274 & 9.427 & 8.055 & 7.003 & 6.177 & 5.517 & 4.979 & 4.160 & 3.569 & 3.124 . & 2.778 \\ \hline \end{tabular}