Problem 7-16 This extended problem covers many of the features of a mortgage. You purchase a town house for $300,000. Since you are able to make a down payment of 20 percent ($60,000), you are able to obtain a $240,000 mortgage loan for 25 years at a 5 percent annual rate of interest. Use Appendix D to answer the questions. Round your answers to the nearest dollar. a. What are the annual payments that cover the interest and principal repayment? $ 0 b. How much of the rst payment goes to cover the interest? 3; 0 c. How much of the loan is paid off during the first year? $ 0 d. What is the interest payment during the second year? $ 0 e. What is the remaining balance after the second year? $ 0 f. Why did the interest payment change during the second year? The annual M in the amount owed b0 each subsequent interest payment