Problem 1
Consider the following fixed-rate, level-payment mortgage: maturity = 360 months, amount borrowed = $1,000,000, annual mortgage rate = 5%. Construct an amortization schedule for the first 12 months.
											Problem 2
											Using the same fixed rate mortgage as in problem A, answer the following questions:
											a) What will the mortgage balance be at the end of the 360th month assuming no prepayments?
b) Without constructing an amortization schedule, what is the mortgage balance at the end of month 170 assuming no prepayments?
c) Without constructing an amortization schedule, what is the scheduled principal payment at the end of month 170 assuming no prepayments?
Problem 3					Problem 4
Complete the following table:					Complete the following table:
CPR Assuming:					SMM Assuming:
Month	50% PSA	175% PSA	400% PSA		Month	50% PSA	175% PSA		400% PSA
1					1
4					4
9					9
27					27
40					40
120					120
340					340