Problem 7-16 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 10 percent ($15,000), you are able to obtain a $135,000 mortgage loan for 20 years at a 6 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? b. How much of the first payment goes to cover the interest? c. How much of the loan ispod off during the first year? d. What is the interest payment during the second year? 5 What is the remaining balance after the second year 1. Why did the interest payment change during the second year? The annual decrease in the amount owed decreases each subsequent interest payment Interest Factors for the Present Value of an Annuity of One Dollar Period lee year 1 2 3 1% 3% 5% 6% 8%. 93 10% 12% 14 16% 18% 20% 24% 28% 32 36% 0990 0.980 0.971 0.962 0.952 0.943 0935 0.926 0.97 0.909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0.758 0.735 1.970 1.942 1913 1.886 1.859 1.833 1,808 1.783 1.759 1.736 1.690 1.647 1.605 1.566 1.528 1.457 1.392 1.332 1.276 2.941 2.884 2.829 2.775 2.723 2.673 2,624 2.577 2.531 2.487 2.402 2322 2.246 2.174 2.106 1981 1.868 1.766 1674 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3,037 2.914 2.798 2.690 2589 2.404 2241 2.096 1966 4.853 4.713 4 580 4.452 4,329 4.212 4.100 3.993 3.890 3.791 3.605 3,433 3.274 3.127 2991 2.745 2.532 2.345 2.181 5 6 7 8 9 10 5.795 5.601 5.417 5.242 5.075 4917 4.766 4.623 4.486 4.355 4.111 3.889 3,685 3.498 3.326 3.020 2.759 2.534 2399 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.039 3.812 3.605 3.242 2937 2.678 2,455 7.652 7.325 7020 6.733 6.463 6.210 5971 5.747 5.535 5335 4.968 4.6394344 4.078 3.837 3.421 3.076 2.786 2.540 8.566 8.162 7.786 7.435 7108 6.802 6.515 6.247 5.985 5.759 5.328 4946 4.60 4.303 4.031 3.566 3.184 2.868 2.603 9.471 8.983 8.530 8.111 7722 7360 7024 6.710 6.418 6.145 5.6505.216 4.833 4.494 4.193 3.682 3.269 2930 2.650 11 12 13 14 15 10.368 9.787_9.253 8.760 8.306 78877.499 7.139 6.805 6,495 5.988 5.453 5.029 4656 4.327 3.776 3 335 2.978 2583 11.255 10.575 9.954 9.385 8.863 8.384 7943 7.536 7161 6,814 6.194 5.660 5.197 4.793 4.439 3.851 3.387 3.013 2.708 12.134 11.348 10.635 9.986 9.394 8.534 8.358 7904 7487 7103 6.424 5,842 5.3424910 4.533 3.912 3.427 3.040 2.727 13.004 12.106 11296 10.563 9.899 9.295 8.745 8.244 7786 7367 6.628 6.002 5.468 5.008 4.611 3.962 3.459 3.061 2.740 13.865 12.849 11.938 11118 10.380 9712 9.108 8.559 8.060 7606 6.811 6.142 5.575 5.092 4.675 4.001 3.483 3.076 2.750 16 14.718 13.578 12.561 11.652 10.838 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 2.758 17 15.562 14.292 13.166 12.166 11.274 10.477 9763 9.122 8,544 8.002 7.120 6373 5.749 5.222 4.775 4,059 3518 3.097 2.763 18 16,398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.2017.250 6.467 5.818 5.273 4812 4.080 3.529 3.104 2767 19 17.226 15.678 14 324 13.134 12085 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 2.770 2018.046 16.351 14.877 13.590 12.462 11470 10.594 9.818 9.128 8.514 7.469 6.623 5.929 5.353 4.870 4.110 3.546 3.113 2.772 25 22.023 19.523 17413 15,622 14,094 12.783 11654 10.675 9.823 9.077 7.843 6.873 6.097 5.467 4.948 4.147 3.564 3.122 2.776 30 25:808 22.937 19.500 17.292 15.373 13.765 12.409 11.258 10.274 9427 8.055 7.003 6.177 5.517 4.979 4.160 3.569 3.124 2.778