We consider the amortization table. Describe the system that relates the monthly payment to the monthly balance as a difference equation System Example: Amortization Amortization Table: Mortgage Schedule of Payments input o output n(comment) MonthPayment Balance Principal paid Interest paid 0.00 $100,000.00 $599 55 $99.900.45 99.55$500.00 3 $599.55 $99,699.85 4 $599 55 $99.598.80 2 $59955 $99,800.40 100.05 $499.50 $100.55 $499.00 101.05$498.50 11 $599 55 $98,87 5104.64$494.91 12 $599 55 98,77 105.16 $494.39 357 $599.55 $51781.25 358 $599 55$1190.6 359 $599 55$597.01 $590 64 593.60 50.00$597.01 $587.71 $11.84 8.91 5.95 $2.99 360 $600.00 Schedule above computed for a $100,000 30-year fed-rate loan, with 1/2% monthly interest rate (compounded monthly). We consider the amortization table. Describe the system that relates the monthly payment to the monthly balance as a difference equation System Example: Amortization Amortization Table: Mortgage Schedule of Payments input o output n(comment) MonthPayment Balance Principal paid Interest paid 0.00 $100,000.00 $599 55 $99.900.45 99.55$500.00 3 $599.55 $99,699.85 4 $599 55 $99.598.80 2 $59955 $99,800.40 100.05 $499.50 $100.55 $499.00 101.05$498.50 11 $599 55 $98,87 5104.64$494.91 12 $599 55 98,77 105.16 $494.39 357 $599.55 $51781.25 358 $599 55$1190.6 359 $599 55$597.01 $590 64 593.60 50.00$597.01 $587.71 $11.84 8.91 5.95 $2.99 360 $600.00 Schedule above computed for a $100,000 30-year fed-rate loan, with 1/2% monthly interest rate (compounded monthly)