Question: Please give step by step workings with formulas using the actuarial method. This is especially for part a. Smithy takes out a $50,000 mortgage on

Please give step by step workings with formulas using the actuarial method. This is especially for part a.

Smithy takes out a $50,000 mortgage on a home at 12% compounded monthly. He is to pay off the mortgage with monthly payments for 20 years, with the first payment due 1 month after the mortgage is taken out.

Find (a) the amount of each monthly payment and (b) construct a partial amortization schedule for the first 4 months of the mortgage.

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