Suppose you take out a $80,000 house mortgage from your local savings bank when the annual percentage rate is 6% compounded semiannually. The bank requires you to repay the mortgage in semiannually installments over the next 10 years.
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What is the semiannually mortgage payment?
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What is the interest amount at the end of the fourth year?
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What is the amortization of the loan at the end of the fourth year?
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What is the remaining balance of your mortgage after 10 payments?
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Create an Amortization Loan Table with the titles:
Interest payment, constant cash flow, amortization of the loan, and Balance.
Calculate each variable for the next 10 years.
