Question: 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

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 n input zn] output yin (comment) Month Payment Balance Principal paid Interest paid 0.00 $100,000.00 1 $599.55 $99,900.45 2 $599.55 $99,800.40 3 $599.55 $99,699.85 4 $599.55 $99,598.80 $99.55 100.05 100.55 $101.05 $500.00 $499.50 $499.00 $498.50 104.64 $105.16 $494.91 $494.39 11 $599.55 $98,877 12 $599.55$98,771 357 $599.55$1781.25 358 $599.55$1190.61 359 $599.55 360 $600.00 $587.71 $590.64 $593.60 $597.01 $11.84 $8.91 $5.95 $2.99 $597.01 $0.00 Schedule above computed for a $100,000 30-year fixed-rate loan, with 1/2% monthly interest rate (compounded monthly)

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