Question: Use the section of an amortization table shown here to answer the following questions. 1 2 8 3 4 5 6 Month 9 10

a) What is the monthly payment? b) What is the original principal? c) What is the interest portion of the 4th

Use the section of an amortization table shown here to answer the following questions. 1 2 8 3 4 5 6 Month 9 10 11 12 13 14 15 16 17 16 19 20 21 22 23 24 25 26 27 215000 Loan (S) 26 29 30 31 32 22 0.055 Rate/Year 0.004583 Rate/Month 1420.63 Payment(5) 2 3 4 Principal ($) 1 $215,000.00 $985.42 $1.420.63 $214.564.79 $983.42 $1,420.63 $214,127 58 $981 42 $1,420.63 $213.688.37 $979.41 $1,420.63 $213.247.14 $977.38 $1,420.63 6 $212.803.89 $975.35 $1,420.63 7 $212,358 62 $973.31 $1,420 63 8 $211.911.30 $971 26 $1.420 63 9 $211,461.93 $969.20 10 $211,010.50 $967.13 11 $210.557.00 $966.05 12 $210,101.42 $962 96 13 $209,643.76 $209,183.99 $960.87 $958.76 $200.722.12 $956.64 $954.52 $952 38 $207,323.77 $950.23 $206,853.38 5948.08 14 15 16 17 $200.258 14 $207,792 02 2222 D Interest (S) Payment ($) Principal Reduction ($) Remaining Principal (S) 5435.21 $214.564.79 $437.21 $214,127.58 $439 21 $213,608 37 $213.247.14 $212,803.89 $212,358.62 $211,911.30 $211.461.93 $211,010.50 $210.557.00 $210,101.42 $209,643 76 $209,183.99 $208,722.12 $200.250.14 18 19 20 $206.380.82 $945.91 21 $205,906 11 $943.74 $205,429.21 $941.65 23 $204.950.13 $939.35 24 $204,468.06 $937.15 25 $203,985 38 $934.93 $1,420.63 $1.420.63 $1.420.63 $1,420 63 $1,420.63 $1,420.63 $1,420.63 $1,420 63 $1,420 63 $1,420.63 $1,420.63 $1.420.63 $1,420 63 $1,420.63 $1,420.63 $1.420.63 $1,420 63 $441.22 $443.25 5445.20 $447 32 $449 37 $451.43 $453.50 $455.58 $457 67 $459.76 $461.87 $463.99 $466 11 $468 25 $470.40 $472.55 $474.72 $476.89 F $479.08 $481.28 $483.48 $485.70 $207,792 02 $207,323 77 $206.853.38 $206,380.82 $205,906.11 $205,429 21 $204,950.13 $204,468.85 $203,905.30 $203,499 68 a) What is the monthly payment? b) What is the original principal? c) What is the interest portion of the 4th payment? d) What is the principal portion of the 6th payment? e) What is the balance remaining after the 2nd payment? f) Why do the interest portion values decrease as you go down the amortization table?

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